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 output | Average total cost (£) | Average revenue (£) |
|---|---|---|
| 50 | 120 | 180 |
| 60 | 115 | 170 |
| 70 | 112 | 161 |
| 80 | 111 | 153 |
At which of the following levels of output will the firm maximise its total profit?
50 units
60 units
70 units
80 units
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.