Lesson 3.3.2
3.3.2 Costs Quiz: Pearson Edexcel Economics, Unit 3
20 questions
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Lesson 3.3.2, Costs: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 3: Theme 3: Business behaviour and the labour market, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
Which type of cost does not change with output in the short run?
- Average cost
- Variable cost
- Marginal cost
- Fixed cost
-
Which type of cost changes directly with the level of output produced?
- Capital cost
- Sunk cost
- Fixed cost
- Variable cost
-
What cost measure is calculated by dividing total cost by output?
- Marginal cost
- Total fixed cost
- Average total cost
- Marginal revenue
-
What is the extra cost of producing one more unit of output called?
- Marginal cost
- Variable cost
- Fixed cost
- Average cost
-
Total fixed cost is £200 and total variable cost is £300 at an output of 10 units. What is average total cost?
- £30
- £50
- £20
- £500
-
Total fixed cost is £200 at an output of 10 units. What is average fixed cost?
- £10
- £200
- £30
- £20
-
Total cost rises from £500 to £560 when output rises from 10 to 11 units. What is marginal cost?
- £60
- £6
- £55
- £560
-
Total variable cost is £300 at 10 units. What is average variable cost?
- £20
- £300
- £50
- £30
-
Why does short-run marginal cost eventually rise as output increases?
- Diseconomies of scale
- Increasing returns
- Economies of scale
- Diminishing marginal productivity
-
At what point does the marginal cost curve cross the average total cost curve?
- Zero output point
- Minimum ATC point
- Point of inflection
- Maximum ATC point
-
What term describes the relationship between LRAC and short-run average cost curves?
- Isoquant curve
- Phillips curve
- Envelope curve
- Supply curve
-
Which of the following is a fixed cost for a bakery in the short run?
- Baking staff wages
- Premises rent
- Electricity bill
- Flour ingredients
-
How does diminishing marginal productivity affect marginal cost in the short run?
- MC equals zero
- MC stays constant
- MC falls
- MC rises
-
What happens to average fixed cost as output increases?
- It falls continuously
- It rises continuously
- It remains constant
- It is U-shaped
-
If average variable cost is £12 at all output levels, what is marginal cost?
- £24
- £12
- £0
- £6
-
Total cost is TC = 200 + 20Q + Q^2. What is marginal cost at Q = 10?
- £400
- £220
- £40
- £20
-
Using the same total cost TC = 200 + 20Q + Q^2, what is average total cost at Q = 10?
- £220
- £50
- £40
- £20
-
Which output condition must be met for a firm to maximise profit?
- AR = AC
- Price = ATC
- ATC = MC
- MC = MR
-
What shape is a traditional long-run average cost curve?
- Horizontal line
- L-shaped
- U-shaped
- Downward sloping
-
Short-run average total cost rises when rising AVC outweighs the fall in which cost?
- Average revenue
- Average fixed cost
- Marginal cost
- Total fixed cost
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