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9 marksTheory of Supply

CAPE Economics Unit 1 · 2013 · Paper 2 · Question 2(c)

Using a correctly labelled graph, explain the relationship between the marginal cost curve and the supply curve in a competitive market.

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Other parts of this question

  1. 2(a)(i)Define marginal cost.[2 marks]
  2. 2(a)(ii)Define average variable cost.[2 marks]
  3. 2(b)(i)Identify ONE factor that causes a movement along the supply curve and explain how the change is caused.[4 marks]
  4. 2(b)(ii)Identify TWO factors that cause the supply curve to shift to the left or right, and explain how the change is caused.[8 marks]

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