What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to costs, revenue and profit. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 3 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on costs, revenue and profit, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Defining short run as a fixed calendar period.
- Saying diminishing returns begin when MP is negative.
- Calculating MP as TP divided by labour.
- Calculating MC as TC divided by output.
- Treating monthly payment as proof that a cost is fixed.
- Saying a rise in fixed cost shifts MC.
- Confusing diminishing returns with decreasing returns to scale.
- Treating returns to scale and economies of scale as exact synonyms.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Costs, Revenue and Profit revision notes.