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Cambridge IGCSE Economics practice

Paper 2 structured question: Firms’ costs, revenue and objectives

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2

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1

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Topic

Firms’ costs, revenue and objectives

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Paper 2Structured Questions1 marks

Understanding revenue types is crucial for businesses.

Description

Revenue Types

Total Revenue (TR) is the total income from sales, while Average Revenue (AR) is the income per unit sold.

  1. a

    State the definition of Total Revenue.

    Aim for approximately 1 distinct marking point.

    [1]

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Paper 2 structured question: Firms’ costs, revenue and objectives

Paper 2Structured Questions3 marks

Description

Revenue Analysis

Average Revenue (AR) is calculated by dividing Total Revenue by the quantity sold.

  1. a

    Explain how Average Revenue is calculated and its significance.

    Aim for approximately 3 distinct marking points.

    [3]