Economics 2281 · O Level · Firms' costs, revenue and objectives

Firms' costs, revenue and objectives — practice question

A firm has fixed costs of $200$ for its daily output. The table shows the firm’s daily total variable costs. What can be concluded about the firm’s average total cost?

  • Ait falls continuously
  • Bit is highest at output $4$ units
  • Cit is lowest at output $4$ units
  • Dit rises continuously

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