O-LevelEconomicsMicroeconomic decision makers2281/12 · Oct/Nov 2014 · Q141 Mark

The diagram shows the cost and revenue curves of a firm which starts to make a profit only after producing 100 units of output. [Figure] What are the correct labels for line 1 and line 2?

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Aline 1: average cost, line 2: average revenue

Bline 1: total cost, line 2: total revenue

Cline 1: total revenue, line 2: total cost

Dline 1: variable cost, line 2: price

✓ Correct answer

C: line 1: total revenue, line 2: total cost

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2014 Paper 1 Variant 2, question 14.

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