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

Firms’ costs, revenue and objectives — practice question

A firm incurs fixed costs of $\$100$ in producing its daily output. The table sets out its daily total variable costs. What can be concluded about the firm’s average total cost?

  • AIt falls continuously.
  • BIt is highest at output $4$ units.
  • CIt is lowest at output $3$ units.
  • DIt rises continuously.

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