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

Firms’ costs, revenue and objectives — practice question

A company has fixed costs of $1000$. The table lists the variable cost at different output levels. Output (units): $1, 2, 3, 4$ Variable cost ($): $100, 190, 270, 350$ If the goods are sold for $500$ each, what profit is earned from selling $4$ units?

  • A$650
  • B$1000
  • C$1650
  • D$2000

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