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

Firms’ costs, revenue and objectives — practice question

The table sets out a firm’s average revenue and average cost at different output levels. If every unit produced is sold, at which level of output is profit greatest?

  • Aoutput $=5$ units, average revenue $=10$ US$, average cost $=30$ US$
  • Boutput $=10$ units, average revenue $=20$ US$, average cost $=20$ US$
  • Coutput $=15$ units, average revenue $=25$ US$, average cost $=15$ US$
  • Doutput $=20$ units, average revenue $=30$ US$, average cost $=18$ US$

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