Eduqas · Microeconomics · Costs, revenues and profit
Eduqas Economics past paper questions: Costs, revenues and profit
Every Eduqas question on Costs, revenues and profit from 2017 to 2025: 3 essays, 6 data response questions, 5 short answer questions and 26 multiple choice questions. It covers Market structures, Demand, supply and elasticity, Macroeconomic objectives and policy, The labour market and Government intervention in markets. Each question links to its paper, mark scheme and examiner report.
Essay questions on costs, revenues and profit
Case study: ASOS (THE ONLINE FASHION AND COSMETICS RETAILER) PROFITS FALL BY TWO
Case study: SHORTAGES OF CHEFS CAUSING CRISIS FOR UK CURRY RESTAURANTS
Data response questions on costs, revenues and profit
Case study: Water Gets Competitive
Case study: Competition regulator backs scrapping of rail franchises.
Short answer questions on costs, revenues and profit
Multiple choice questions
- A-level Component 1, June 2025, Q3
If demand rises for a profit maximising firm operating under conditions of monopolistic competition, which of the following effects for the firm are most likely in the short run?
- A-level Component 1, June 2025, Q5
Questions 5 and 6 use a diagram in the question paper showing a firm's AC, AR and MR curves (output 0 to 100). What is the level of abnormal profit at the firm's allocatively efficient output?
- A-level Component 1, June 2025, Q6
Questions 5 and 6 use a diagram in the question paper showing a firm's AC, AR and MR curves (output 0 to 100). What are the firm's total costs at the profit maximising output?
- A-level Component 1, June 2025, Q8
The diagram in the question paper shows a firm's total costs at different output levels (output 0 to 90, costs £0 to £70 000). Which of the following is true?
- A-level Component 1, June 2025, Q11
A firm would definitely make normal profit if:
- A-level Component 1, June 2025, Q17
To increase the number of cars sold each week from 20 cars to 21 cars, a firm cuts the price of a car from £30 000 to £27 000. The firm's weekly marginal revenue (MR) from this decision is:
- A-level Component 1, June 2024, Q4
A firm in perfect competition is in long run equilibrium. If that firm increased its output, which of the following would show the effects on its marginal cost, price and profit?
- A-level Component 1, June 2023, Q3
The diagram in the question paper shows two long run average cost curves for a firm, LRAC and LRAC1. The shift in position of the long run average cost curve for a firm in a particular industry from LRAC to LRAC1 could be the result of:
- A-level Component 1, June 2023, Q7
The diagram below shows a market in which the government sets a guaranteed minimum price for a product. It guarantees to buy any unsold units at the guaranteed price. The effect of the government increasing the minimum price from £8 to £10…
- A-level Component 1, June 2023, Q15
The diagram below shows a firm that has decided to increase its output from Q1 to Q2. The most likely impact of this decision on the firm will be: (The diagram is in the question paper.)
- A-level Component 1, June 2022, Q7
Questions 7 and 8 use a graph in the question paper showing a firm in an imperfect market (MC, ATC, AVC, AR and MR curves, output 0 to 15). The firm's total fixed costs if it produces the profit maximising output are (to the nearest £):
- A-level Component 1, June 2022, Q8
Questions 7 and 8 use a graph in the question paper showing a firm in an imperfect market (MC, ATC, AVC, AR and MR curves, output 0 to 15). The firm's abnormal profit if it produces the sales revenue maximising output will be:
- A-level Component 1, June 2022, Q14
A firm faces the following cost and revenue situation. The firm's total fixed costs are £20 per day. Marginal revenue is £15 for every unit. Marginal cost of the 1st to 7th unit per day: £5, £7, £9, £11, £13, £16, £19. If the firm produces…
- A-level Component 1, October 2021, Q3
The diagram below shows the cost and revenue curves for a firm which is currently operating at an output of Q1. If the firm cut output to Q2, what would be the expected impact on total revenue, total cost and total profit? (The diagram is…
- A-level Component 1, October 2021, Q9
The diagram below shows a monopoly firm with MC, AC, AR (demand) and MR curves and outputs Q1 to Q5 marked. Which of the following is true? (The diagram is in the question paper.)
- A-level Component 1, October 2020, Q2
Study the table below. Output 5: short run total cost £170, long run total cost £150. Output 6: £180, £174. Output 7: £196, £196. Output 8: £240, £216. Output 9: £288, £234. Output 10: £340, £250. Over the output range shown in the table…
- A-level Component 1, June 2019, Q4
The diagram below shows the long run average cost curve (LRAC) for a firm. Point A is at output Q1 and cost C1. Point B is at a lower output, Q2, and a higher cost, C2. The impact on costs as a result of a movement from A to B is an…
- A-level Component 1, June 2019, Q5
The diagram below shows a firm operating in a perfectly competitive market. What is the short run profit maximising level of output for the firm? (Points V to Z are marked on the output axis of the diagram in the question paper.)
- A-level Component 1, June 2019, Q6
A manufacturer of hand-made racing bicycles has fixed costs of £500 per month. The marginal cost of the 1st to the 6th bicycle each month is £300, £200, £250, £300, £450 and £500. What is the average total cost of producing 5 bicycles per…
- A-level Component 1, June 2019, Q19
A manufacturer of hand-made wedding dresses has the following financial data. Total fixed costs are £5 000 per month at each output. Total variable costs are £3 500 for 1 dress, £6 800 for 2 dresses and £9 000 for 3 dresses per month. The…
- A-level Component 1, June 2018, Q5
The diagram below shows the short run equilibrium for a firm and industry in perfect competition. At price P1 the firm produces where MC = MR and its AR is above its AC. In the long run, which one of the following would be most likely to…
- A-level Component 1, June 2018, Q8
The diagram in the question paper shows a firm's marginal cost (MC) curve. Which of the following total variable cost (TVC) curves is most likely for a firm with that marginal cost curve? (Options A to E are diagrams: see the question…
- A-level Component 1, June 2018, Q11
The table below shows the total costs for a firm at different levels of output: Output Total cost 0 £100 1 £110 2 £118 3 £130 4 £145 5 £165 6 £200 The average variable cost of making 5 units is:
- A-level Component 1, June 2018, Q14
The table below shows the output and costs for a firm producing hand-made beds over a three-month period (October, November, December). Output: 500, 450, 400 units. A Heating: £400, £500, £600. B Lighting: £100, £110, £120. C Wood: £250…
- A-level Component 1, June 2018, Q16
A perfectly competitive firm faces the following cost and revenue situation when operating at its profit maximising output of 10 000 units. Price per unit: £20 Variable cost per unit: £18 Fixed cost per unit: £5 Other things being equal…
- A-level Component 1, June 2017, Q20
The diagram below shows the short run average cost curves (SRAC1 to SRAC4) and the long run average cost curve (LRAC) for a firm. Based on this diagram it is likely that as output increases the firm will experience:
Question text is quoted from the question papers, © WJEC CBAC Ltd (Eduqas), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.