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

Firms’ costs, revenue and objectives — practice question

A firm incurs fixed costs of $100 for its daily output. The table gives its daily total variable costs. What conclusion can be drawn 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