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Edexcel IGCSE Economics 1.2.3.a business revenue cost and profit formulae

Practise business-formula questions by using price, output, fixed cost and variable cost data to calculate revenue, cost or profit.

Syllabus
First assessment 2019
Course
Economics 4EC1

Exam points

  • Calculate total revenue, total cost or profit from prices, output and cost tables.
  • Select the correct formula for average cost, total revenue or profit change.
  • Define cost and revenue terms using fixed, variable, average or total values.

1.2.3.a Revenue, cost and profit formulae question 1

[Maximum number: 3]

Question (a)

(a)

A firm has total fixed costs of $40000 per month and variable costs of $ 150 per unit. If it produces 1,000 units, what are the total costs per month for the firm?

A

$ 190000

B

$ 150000

C

$ 41150

D

$ 40150

[ 1 ]

Question (b)

(b)

Figure 1 shows the costs of production per month for a firm making 2,000 units.

Figure 1

Figure 1

Calculate the average cost per unit for the firm when it makes 2,000 units. You are advised to show your working.

[ 2 ]
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