IB Economics HL 2.11.2 Hl Rational Producer Behaviour Topic Practice

For an accurate, labelled MR curve.

zation.

Level

Marks

0

The work does not meet a standard described by the descriptors below.

1

The written response is limited.

1-2

For explaining that profits will be maximised where MR=MC (or that TR - TC is maximised) [1].

and that MC=0 in this case OR for explaining that since there are no variable costs (or only fixed costs), maximum profit will occur at the same quantity as maximum revenue, which is when MR = 0 [1].

2

The written response is accurate.

3-4

And for explaining that profits will therefore be maximised when Q is 60000 [1].

At a price of $800 [1].