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Edexcel A-Level Economics A2 3.3.3 3b Profit Maximising Equilibrium in the Short Run and Long Run Questions

Practise profit-maximising equilibrium in short-run and long-run diagrams, including entry, exit and changes to industry output.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • use MR equals MC and cost curves to identify short-run profit or loss for a competitive firm
  • predict long-run entry or exit when supernormal profit or loss is shown on a diagram

Edexcel A-Level Economics A2 3.3.3 3b Profit Maximising Equilibrium in the Short Run and Long Run Questions question 1

[Maximum number: 1]

The diagram shows the short-run costs and revenues for a farmer producing wheat in India.

Figure for Question Edexcel A-Level Economics A2 3.3.3 3b Profit Maximising Equilibrium in the Short Run and Long Run Questions question 1 — Edexcel A-Level Economics A2

Which one of the following is most likely to occur in the long-run?

A

Additional wheat farmers will enter the market

B

Some wheat farmers will leave the market

C

The wheat farmer will make supernormal profit

D

The wheat farmer will make a loss

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