0455.3.7.1 — definition of costs of production Total cost (TC), average total cost (ATC), fixed cost (FC), variable cost (VC), average fixed cost (AFC), : past paper questions
Real questions on 0455.3.7.1 — definition of costs of production total cost (tc), average total cost (atc), fixed cost (fc), variable cost (vc), average fixed cost (afc),
The newest 20 of 32 written questions. Open one to see it on the real paper.
- 0455/23 · May/June 2026 · Q5a[2]
Define ‘productivity’.
See it on the paper → - 0455/21 · October/November 2025 · Q3b[4]
Explain two influences on productivity.
See it on the paper → - 0455/22 · October/November 2025 · Q3a[2]
Define average total cost.
See it on the paper → - 0455/11 · October/November 2024 · Q15[1]
What is an example of a fixed cost?
See it on the paper → - 0455/12 · October/November 2024 · Q13[1]
What would cause the shift from ATC1 to ATC2?
See it on the paper → - 0455/11 · May/June 2024 · Q13[1]
What happens to average total cost over this output range?
See it on the paper → - 0455/11 · May/June 2024 · Q14[1]
What is the average fixed cost of the firm?
See it on the paper → - 0455/21 · October/November 2023 · Q2a[2]
how average revenue is calculated.
See it on the paper → - 0455/22 · October/November 2023 · Q3a[2]
with an example, a fixed cost.
See it on the paper → - 0455/23 · October/November 2023 · Q4c[6]
Analyse how advances in technology could affect firms’ profits.
See it on the paper → - 0455/22 · February/March 2023 · Q3b[4]
Explain two advantages of capital‑intensive production.
See it on the paper → - 0455/12 · October/November 2022 · Q20[1]
An individual decides to employ a professional decorator rather than buying the materials and decorating her house herself. Why would this decision cause GDP to rise?
See it on the paper → - 0455/22 · February/March 2022 · Q3c[6]
Analyse, using a diagram, the effect of an increase in output on average fixed cost (AFC) and total fixed cost (TFC).
See it on the paper → - 0455/11 · October/November 2021 · Q13[1]
For some months the price of petrol (gas) decreased significantly. How would this affect a delivery firm that delivers goods for other firms using petrol (gas) powered vehicles?
See it on the paper → - 0455/23 · October/November 2021 · Q5b[4]
Explain two reasons why a loss-making firm may continue to produce.
See it on the paper → - 0455/12 · May/June 2021 · Q12[1]
Which cost of production falls continuously as output increases?
See it on the paper → - 0455/21 · May/June 2021 · Q3b[4]
Explain two ways a firm could increase the productivity of its workers.
See it on the paper → - 0455/22 · October/November 2020 · Q1b[2]
two variable costs of producing palm oil.
See it on the paper → - 0455/12 · May/June 2020 · Q12[1]
The table shows total fixed and total variable costs at different levels of output for a firm. What happens as output rises?
See it on the paper → - 0455/12 · May/June 2020 · Q13[1]
The following information refers to a firm producing shoes. At which level of output does the firm maximise profits?
See it on the paper →
What examiners said
There were some good explanations of possible advantages of capital-intensive production particularly in terms of the hours that capital gods can work and the efficiency of capital goods. Some candidates, however, wrote rather vague answers. For example, some wrote that capitalintensive production would reduce labour costs without considering the overall effect on costs of production.
— Examiner report, February/March 2023, 0455/22 Q3(b) (Cambridge)
Some candidates drew a clear and accurate diagram, or two separate diagrams, showing total fixed cost and average fixed cost. These candidates also provided relevant written analysis. Some candidates drew inaccurate diagrams. Some of these showed total fixed cost rising and average fixed costs remaining unchanged. Others confused average fixed costs and average variable costs. A number of other ca...
— Examiner report, February/March 2022, 0455/22 Q3(c) (Cambridge)
It was clear from the answers given that some candidates did not know why a firm would continue to produce if it was making a loss. Strong answers gave two good reasons such as they might be making goods that attracted subsidies from the government, e.g., merit goods or that while they were making a loss now, they expected to make a profit in the long run. The explanation for this was either that,...
— Examiner report, October/November 2021, 0455/23 Q5(b) (Cambridge)
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