An economist and an accountant were talking about the accounts of a company.
Task 1: Revenue and cost information for one year for firms A, B and C.
Task 2: Using AC to show different profit and loss situations.
How do economists measure profit?
How do firms maximize profits?
Do businesses have objectives other than profit maximization?
Do they always behave rationally?
consider the impact of a company on others and the environment.
In HL Paper 3, you may be asked to calculate marginal cost, marginal revenue, average cost, average revenue and/or profit from a set of data.
Paper 1 HL 10 marks; 15 marks