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1.4 Production, costs and revenue

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Question 1

A specialized engineering firm produces custom water-filtration systems. The table below shows the units of output, average total cost (ATC), and average revenue (AR) for the firm.

Units of outputAverage total cost (£)Average revenue (£)
50120180
60115170
70112161
80111153

At which of the following levels of output will the firm maximise its total profit?

50 units

60 units

70 units

80 units

1.4 Production, costs and revenue Questions

  1. A Level
  2. /Economics
  3. /1.4 Production, costs and revenue