O-LevelEconomicsMicroeconomic decision makers2281/12 · Oct/Nov 2019 · Q151 Mark
A firm producing bicycles has the following costs at different levels of output. [Table for Question 15: output: 10, total fixed costs (): 300, total variable costs (): 800; output: 20, total fixed costs (): 300, total variable costs (): 1500; output: 30, total fixed costs (): 300, total variable costs (): 3300] What happens to the average total cost over this range of output?
AIt falls continuously.
BIt falls then rises.
CIt rises continuously.
DIt rises then falls.
✓ Correct answer
B: It falls then rises.
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