0455.3.7.3 — definition of revenue Total revenue (TR) and average revenue (AR). Note: marginal revenue is not required.: past paper questions

Real questions on 0455.3.7.3 — definition of revenue total revenue (tr) and average revenue (ar). note: marginal revenue is not required.

The newest 5 of 5 written questions. Open one to see it on the real paper.

1. 0455/23 · October/November 2022 · Q1g[6]

   Discuss whether or not the profits of Ecuador’s textile firms are likely to have increased between 2016 and 2019.

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2. 0455/11 · October/November 2021 · Q12[1]

   The table shows the average revenue of a firm at various levels of output. output average revenue ($) 1 10 2 8 3 6 4 4 What happens to total revenue as output rises?

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3. 0455/12 · May/June 2021 · Q14[1]

   What is calculated when price is multiplied by the quantity demanded of a product?

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4. 0455/22 · February/March 2020 · Q3a[2]

   Define total revenue.

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5. 0455/23 · October/November 2019 · Q1e[5]

   Analyse, using Fig. 1.1, the relationship between copper output and revenue from the sale of copper.

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What examiners said

There was a wide range of information in the source material which could be used for answering this question. A typical strong answer was where candidates carefully selected information to support arguments both for and against profits of Ecuador’s textile firms increasing. Some candidates selected material that was not relevant to Ecuador’s textile firms and had more to do with the state of the e...

— Examiner report, October/November 2022, 0455/23 Q1(g) (Cambridge)

Question 12 was answered correctly by 30 per cent who chose option C. 3 per cent chose option A, 64 per cent chose option B and 3 per cent chose option D. Total revenue is obtained by multiplying the average revenue, or price, by the output. It can be seen from the table that this will result in a sequence that at first rises and then falls (option C).

— Examiner report, October/November 2021, 0455/11 Q12 (Cambridge)

The expected relationship would be a direct relationship e.g. output goes up, so revenue rises. The data did not show that. Instead a clear negative or inverse relationship was shown, but relatively few candidates identified this. Whilst a few did identify that between 2010–14 revenue rose when output fell with the reverse happening in 2014–17, there was very little analysis. A few did state that...

— Examiner report, October/November 2019, 0455/23 Q1(e) (Cambridge)