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

Firms’ costs, revenue and objectives — practice question

The table presents a firm's average revenue at different output levels. Output and average revenue ($): 1 → 10, 2 → 8, 3 → 6, 4 → 4. How does total revenue change as output increases?

  • AIt falls and then rises.
  • BIt falls continuously.
  • CIt rises and then falls.
  • DIt rises continuously.

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