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Cambridge IGCSE Economics practice

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

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Firms’ costs, revenue and objectives

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Paper 2Structured Questions4 marks

A company produces 100 units of a product. The total fixed costs are $200, and the total variable costs are $300.

Description

Production Costs Analysis

Calculate the Total Cost (TC), Average Total Cost (ATC), Average Fixed Cost (AFC), and Average Variable Cost (AVC) for the company.

  1. a

    Calculate the Total Cost (TC) of production.

    Aim for approximately 2 distinct marking points.

    [2]
  2. b

    Calculate the Average Total Cost (ATC) of production.

    Aim for approximately 2 distinct marking points.

    [2]

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

Paper 2Structured Questions4 marks

Description

Cost Calculation

Determine the Average Fixed Cost (AFC) and Average Variable Cost (AVC) for the factory.

  1. a

    Calculate the Average Fixed Cost (AFC).

    Aim for approximately 2 distinct marking points.

    [2]
  2. b

    Calculate the Average Variable Cost (AVC).

    Aim for approximately 2 distinct marking points.

    [2]