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

Firms’ costs, revenue and objectives — practice question

The table presents a firm's average total cost across different output levels. What occurs once 4 units have been produced?

  • AThe firm experiences management problems.
  • BThe firm gains the benefits of merging with another firm.
  • CThe firm pays lower interest rates to banks.
  • DThe firm receives significant discounts from bulk buying.

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