3.3- Revenues, Costs & Profits- A level Economics Edexcel Exam Questions

UNIT ASSESSMENT




Edexcel A Level
Economics (A)
Unit Assessment

3.3 Revenues, Costs &
Profits
(Edition 1)

Time: 60 minutes
Maximum marks: 50




Name


Centre Name

, Edexcel A Level Economics (A)
Unit Assessment – 3.3 Revenues, Costs and Profits

Total marks: 50
Time allowed: 1 hour


Section A
ANSWER ALL THE QUESTIONS


1a A car manufacturer responds to an increase in demand by expanding its output. If the new level of
output is beyond its minimum efficient scale, which of the following best describes its situation?

A Falling long run average costs o
B External economies of scale o
C Diseconomies of scale o
D Internal economies of scale o
(1 mark)

1b With reference to this diagram, state whether demand will be price elastic or inelastic at
i) output levels Q1
ii) output level Q2

(2 marks)




Answer to part i)




Page 2 Edexcel A Level Economics (A) Unit Assessment www.tutor2u.net/economics