AS Paper 1, June 2018Introduction to Markets and Market Failure
AS Paper 1, June 2018, Q5(b)
The diagram shows the production possibility frontier for the BBC. Assuming the BBC is at point W, annotate the diagram to show the opportunity cost of providing more educational programmes.
Short answerAnnotate2 marks
Context
The British Broadcasting Corporation (BBC) is a TV broadcaster. It is financed through an annual TV licence fee of £145.50. At this fee level many TV owners benefit from consumer surplus.
Original diagram required. See the original question paper for the diagram.