The table below shows the relationship between a firm's output and its production costs.
| Output | Average variable costs (£) | Average total costs (£) |
|---|---|---|
| 10 | 80 | 140 |
| 20 | 65 | 95 |
| 30 | 55 | 75 |
When the firm increases its output from
10 to 20 units, average fixed costs do not change.
10 to 20 units, average fixed costs fall by £20.
20 to 30 units, average fixed costs fall by £10.
20 to 30 units, average fixed costs fall by £5.
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.