O-LevelEconomicsMicroeconomic decision makers2281/12 · May/June 2021 · Q121 Mark

Which cost of production falls continuously as output increases?

Aaverage fixed cost

Baverage total cost

Caverage variable cost

Dtotal variable cost

✓ Correct answer

A: average fixed cost

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2021 Paper 1 Variant 2, question 12.

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