O-LevelEconomicsMicroeconomic decision makers2281/12 · May/June 2015 · Q141 Mark

In 2013, Barclays Bank had two branches in a city. It decided to close them both, move to a different building and employ fewer hourly-paid staff. What is likely to have happened to the bank's fixed and variable costs?

Afixed cost: fall, variable cost: fall

Bfixed cost: fall, variable cost: rise

Cfixed cost: rise, variable cost: fall

Dfixed cost: rise, variable cost: rise

✓ Correct answer

A: fixed cost: fall, variable cost: fall

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2015 Paper 1 Variant 2, question 14.

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