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CAPE Economics Unit 1 · 2005 · Paper 1 · Question 5(a)

Short-run cost curves diagram showing MC, ATC, and AVC.

State the difference between the Average Total Cost Curve (ATC) and the Average Variable Cost Curve (AVC).

This question uses a figure or table from the paper — you'll see it when you practise.

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Other parts of this question

  1. 5(b)Explain why the Marginal Cost Curve (MC) intersects the ATC and AVC curves at their respective minimum points.[2 marks]
  2. 5(c)Explain why point 'A' represents the shutdown point for the firm.[3 marks]

More practice: the rest of this paper · more Theory of Supply questions · all CAPE Economics Unit 1 past papers