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2 marksMarket Structure

CAPE Economics Unit 1 · 2006 · Paper 1 · Question 7(b)

Explain whether the firm is likely to experience normal profits, economic profits, or a loss.

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Other parts of this question

  1. 7(a)(i)State the level of output at which the firm is producing.[1 mark]
  2. 7(a)(ii)Identify which intersection, A, B, C or D, indicates the output level.[1 mark]
  3. 7(c)Explain what will happen to output in the long run.[2 marks]

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