Economics 0455 · IGCSE · Firms’ costs, revenue and objectives

Firms’ costs, revenue and objectives — practice question

At what point is profit maximisation achieved?

  • Awhen average fixed cost is at a minimum
  • Bwhen average revenue is at a maximum
  • Cwhen the firm produces the largest output it can with the resources it has available
  • Dwhen there is the greatest possible difference between total revenue and total cost

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI