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Firms’ costs, revenue and objectives
Understand the different types of production costs, including total cost (TC), average total cost (ATC), fixed cost (FC), variable cost (VC), average fixed cost (AFC), and average variable cost (AVC). Note that marginal cost is not included.
5
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50
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35
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90 min
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CambridgeIGCSEEconomicsSubject content
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Firms’ costs, revenue and objectives outcomes5 objectives
- Understand the different types of production costs, including total cost (TC), average total cost (ATC), fixed cost (FC), variable cost (VC), average fixed cost (AFC), and average variable cost (AVC). Note that marginal cost is not included.
- Be able to calculate various production costs such as total cost (TC), average total cost (ATC), fixed cost (FC), variable cost (VC), average fixed cost (AFC), and average variable cost (AVC). This includes defining, drawing, and interpreting diagrams that illustrate how changes in output impact production costs.
- Know the definitions of revenue types, specifically total revenue (TR) and average revenue (AR). Note that marginal revenue is not included.
- Be able to calculate total revenue (TR) and average revenue (AR), and understand how sales levels affect revenue.
- Understand the various objectives that firms may pursue, including survival, social welfare, profit maximization, and growth.
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