CAIE A-Level Economics A2 7.3.2 Efficiency Conditions Questions

Practise applying price equals marginal cost, minimum average cost and welfare conditions to assess allocative and productive efficiency in A2 questions.

Exam points

Apply allocative and productive efficiency conditions to firms, markets and welfare outcomes.

[Maximum number: 1]

The diagram shows the cost and revenue curves for a firm.

At which price does allocative efficiency occur?

Figure for Question CAIE A-Level Economics A2 7.3.2 Efficiency Conditions Questions question 1 — CAIE A-Level Economics A2

Option A shown in diagram

Option B shown in diagram

Option C shown in diagram

Option D shown in diagram

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CAIE A-Level Economics A2 7.3.2 Efficiency Conditions Questions question 1