Economics (AS & A Level) · Oct / Nov 2023 · Paper 33 · Question 4
9708Types of cost, revenue and profit, short-run and long-run production
The table shows a firm's total fixed cost and total variable cost. | output | total fixed cost $ | total variable cost $ | |---|---|---| | 1 | 1000 | 1000 | | 2 | 1000 | 2000 | | 3 | 1000 | 3000 | | 4 | 1000 | 4000 | | 5 | 1000 | 5000 | | 6 | 1000 | 6000 | What can be concluded from the table?
- AAverage fixed cost falls.
- BAverage fixed cost is constant.
- CAverage variable cost falls.
- DAverage variable cost rises.
As printed in the paper
Show the answer
Correct answer: A. Average fixed cost falls.
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.