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3.6. Firms’ costs, revenue and objectives

Syllabus
0455–2027–2028
Topic
3.6
Level
—

3.6.1—Definitions of costs of production

  • total cost (TC), average total cost (ATC), fixed cost (FC), average fixed cost (AFC), variable cost (VC), average variable cost (AVC)

3.6.2—Calculation of costs of production

  • calculation of TC, ATC, FC, AFC, VC and AVC
  • drawing and interpretation of diagrams that show how changes in output affect costs of production

3.6.3—Definition of revenue

  • definitions of total revenue (TR) and average revenue (AR)

3.6.4—Calculation of revenue

  • calculation of TR and AR
  • the influence of sales on revenue

3.6.5—Objectives of firms

  • survival, social welfare, profit maximisation and growth

Objective notes

5 learning objectives
ConceptIGCSE Economics