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1.4 Production, costs and revenue

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Question 22

A regional microbrewery analyzed its production costs at different weekly output levels of craft beer casks. The table below outlines its average variable costs and average total costs:

Output (casks)Average variable costs (£)Average total costs (£)
50120210
100105150
15095125

When the microbrewery increases its weekly output from

50 to 100 casks, average fixed costs fall by £15.

50 to 100 casks, average fixed costs fall by £45.

100 to 150 casks, average fixed costs fall by £25.

100 to 150 casks, average fixed costs fall by £10.

1.4 Production, costs and revenue Questions

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