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Northern IrelandEconomicsQuick questions

A2 1: Business Economics

Quick questions on Costs, revenue and profit - CCEA A-Level Economics A2 1

3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Distinguish between a fixed cost and a variable cost, with an example of each. [3 marks]
What is q2?
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State two internal economies of scale. [2 marks]
What is q3?
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Explain why a profit-maximising firm produces where marginal cost equals marginal revenue. [4 marks]

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