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Cost Formulae and Diagrams

Study Edexcel Economics cost questions by calculating fixed, variable, average and total costs and interpreting their effects on output, prices and profit.

Syllabus
2019
Course
Economics YEC11
Level
A2

Exam points

  • Calculate average fixed, variable and total costs from total-cost data and the relevant output.
  • Use total cost minus total fixed cost to derive total variable cost before dividing by output.
  • Interpret cost diagrams by linking cost shifts to output, price, revenue and profit changes.

3.3.2.2c - Formulae to calculate and understand the relationship between: • total cost • total question 1

[Maximum number: 1]

The table shows the costs for a small hairdressing business as it increases the number of haircuts.

Table for Question 3.3.2.2c - Formulae to calculate and understand the relationship between: • total cost • total question 1 — Edexcel A-Level Economics A2
A

$ 4.00

B

$ 8.00

C

$ 8.66

D

$ 12.50

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