What this practice covers
These questions are drawn from past Cambridge IGCSE papers and filtered to firms' costs, revenue and objectives. 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 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on firms' costs, revenue and objectives, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Classifying wages as always variable. Permanent salaried staff are a fixed cost.
- Confusing total revenue with profit. Revenue is money in; profit is what is left.
- Forgetting that average revenue equals price.
- Dividing by the wrong figure when calculating average cost.
- Assuming every firm maximises profit.
- Confusing average cost with variable cost per unit.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Firms' Costs, Revenue and Objectives revision notes.