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Firms: costs of production (fixed, variable, average and marginal)
Practice Questions

20 CIE IGCSE Economics questions on Firms: costs of production (fixed, variable, average and marginal), each with instant feedback and a full examiner-style mark scheme.

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Question 1 · 1 mark · Difficulty 1/3

What is meant by the term 'fixed costs'?

  1. Costs that change with the level of output
  2. Costs that remain constant regardless of the level of output
  3. Costs that are always higher than variable costs
  4. Costs that only occur when production begins
Show answer & explanation
✓ Answer: B — Costs that remain constant regardless of the level of output
Award 1 mark for identifying that fixed costs remain constant regardless of the level of output. A is incorrect — this describes variable costs. C is incorrect — fixed costs are not necessarily higher than variable costs. D is incorrect — fixed costs exist even when output is zero.
Question 2 · 1 mark · Difficulty 1/3

Which of the following is most likely to be a variable cost for a car manufacturing plant in Germany?

  1. Annual insurance premium for the factory
  2. Monthly lease payment for machinery
  3. Steel used in production
  4. Salary of the factory manager
Show answer & explanation
✓ Answer: C — Steel used in production
Award 1 mark for identifying steel as a variable cost — it varies directly with the number of cars produced. A is incorrect — insurance is a fixed cost paid regardless of output. B is incorrect — lease payments are fixed contractual obligations. D is incorrect — the manager's salary is typically fixed regardless of output levels.
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CIE IGCSE Economics: Firms: costs of production (fixed, variable, average and marginal) FAQ

How many CIE IGCSE Economics questions on Firms: costs of production (fixed, variable, average and marginal) are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on Firms: costs of production (fixed, variable, average and marginal) for CIE IGCSE Economics, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
Is Kramizo free for CIE IGCSE students preparing for Economics?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Firms: costs of production (fixed, variable, average and marginal) practice with other Economics topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Firms: costs of production (fixed, variable, average and marginal) questions aligned to the official CIE IGCSE Economics syllabus?
Every question is written against the published CIE IGCSE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Firms: costs of production (fixed, variable, average and marginal) typically tested on CIE IGCSE Economics papers?
Firms: costs of production (fixed, variable, average and marginal) appears across multiple question types on real CIE IGCSE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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