Quelpr
5 marksTheory of Supply

CAPE Economics Unit 1 · 2012 · Paper 2 · Question 2(a)(i)

A perfectly competitive microchip firm has a fixed cost of $128. Its variable costs across output levels 0 to 4 are provided.

State the formula for each of the following costs: Total cost, Marginal cost, Average fixed cost, Average total cost, and Variable cost.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 2(a)(ii)Copy and complete the table to determine Total Cost, Marginal Cost, Average Fixed Cost, and Average Total Cost for output levels 0 through 4.[8 marks]
  2. 2(b)Using a diagram, explain the relationship between marginal cost and average total cost.[6 marks]
  3. 2(c)Using a diagram, explain the relationship among the marginal cost curve, the firm's supply curve, and the average variable cost curve.[6 marks]

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