Examo
About

© 2026 Examo. Free IGCSE revision built around the mark scheme.

About
  • Home
  • Practice
  • Flashcards
  • Saved
HomeeconomicsFirms' Costs, Revenue & Objectives
0455

Firms' Costs, Revenue & Objectives

Microeconomic Decision Makers · 5 question types

PractiseFlashcards
Download PDF

0455 Topics

Firms' Costs, Revenue & Objectives10%
  1. What This Topic Covers
  2. Fixed Costs and Variable Costs
  3. Total Cost, Average Cost and the Cost Formulas
  4. Total Revenue and Average Revenue
  5. Profit, Loss and Break-Even
  6. Economies and Diseconomies of Scale
  7. Objectives of Firms
Workers & Wages8%
Money & Banking4%
Households4%
Firms: Types, Mergers & Scale5%
Firms & Production4%
Types of Markets: Competition & Monopoly4%

Frequency legend

High (≥14%)
Above avg (10 to 13%)
Average (<10%)

Exam Frequency Analysis

Past paper frequency (2018 to 2024)

This topic accounts for approximately 10% of your exam marks.

stable
Medium
Stable10%

Fixed vs variable costs, profit calculations, and average cost appear regularly across both Section A and Section B questions.

Every firm faces the same basic question: do its revenues from selling its product exceed the costs of making it? If yes, the firm makes a and can survive and grow; if no, the firm makes a loss and will eventually leave the market.

This topic looks at:

  • the costs a firm pays to produce its output (fixed and variable),
  • the revenue it earns from selling that output,
  • the profit (or loss) that results,
  • how average changes as the firm grows (economies and diseconomies of scale),
  • and the objectives a firm's owners set for it.