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

Firms’ costs, revenue and objectives — practice question

Over a period of several months, the price of petrol (gas) fell sharply. How would this influence a delivery firm that transports goods for other firms using vehicles powered by petrol (gas)?

  • AAverage fixed costs would decrease.
  • BProfits would decrease.
  • CTotal fixed costs would decrease.
  • DVariable costs would decrease.

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