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

Firms' costs, revenue and objectives — practice question

The table displays a firm’s average revenue and average cost at various output levels. If every unit produced is sold, at which output level is profit at its highest?

  • Aoutput 5 units; average revenue 10 US$; average cost 30 US$
  • Boutput 10 units; average revenue 20 US$; average cost 20 US$
  • Coutput 15 units; average revenue 25 US$; average cost 15 US$
  • Doutput 20 units; average revenue 30 US$; average cost 18 US$

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