O-LevelEconomicsMicroeconomic decision makers2281/12 · Oct/Nov 2016 · Q141 Mark

A firm has fixed costs of $200 for its daily output. The table shows its daily total variable costs. What can be concluded about the firm's average total cost?

Ait falls continuously

Bit is highest at output 4 units

Cit is lowest at output 4 units

Dit rises continuously

✓ Correct answer

C: it is lowest at output 4 units

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2016 Paper 1 Variant 2, question 14.

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