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Subjects · Leaving Cert Economics

Leaving Cert Economics: Costs, revenue & profit

How often Costs, revenue & profit comes up on the Economics papers, every year it was asked, and questions to try.

HL Asked on 4 of the last 5 Higher Level papers, most recently in 2025. most years

OL Asked on 4 of the last 5 Ordinary Level papers, most recently in 2025. most years

Costs, revenue & profit, Higher Level(8 marks)

Quick ones on Costs, revenue & profit.

(a)At 50 units, a firm's fixed costs are €200 and variable costs €300. What is its average cost?
  1. €6
  2. €10
  3. €4
(b)Total cost rises from €800 to €860 when output rises from 20 to 21 units. What is the MC of the 21st unit?
  1. €860
  2. €41
  3. €60
(c)A profit-maximising firm produces where…
  1. MC = MR, with MC rising
  2. TR is at its maximum
  3. AC is at its minimum
Show the answers

(a) €10

(b) €60

(c) MC = MR, with MC rising

Your turn: Higher Level questions on Costs, revenue & profit.

Higher Level

Asked on 4 of the last 5 Higher Level papers, most recently in 2025. most years

Every paper, year by year

YearWhere it came up
2025Q16
2024Q6
2023Q4, Q9
2022Q14
2021Not asked

Links open the State Examinations Commission’s paper for that year.

More Costs, revenue & profit questions

Costs, revenue & profit, 2 marks

Apart from maximising profit, a firm may aim to…

  1. Maximise its average cost of production
  2. Minimise its output and its sales
  3. Maximise sales revenue or market share
Show the answer

Maximise sales revenue or market share

Firms may pursue growth, market share, survival or social goals. Where owners and managers differ, managers may favour size and sales over profit.

Costs, revenue & profit, 3 marks

Total revenue is €500 at 10 units and €540 at 11 units. What is the marginal revenue of the 11th unit?

  1. €540
  2. €40
  3. €49.09
Show the answer

€40

MR = change in TR ÷ change in output = (540 − 500) ÷ 1 = €40. €49.09 is average revenue at 11 units (540 ÷ 11), which is the price, not MR.

Costs, revenue & profit, 3 marks

At 100 units, a firm's average variable cost is €6 and average fixed cost is €4. What is total cost?

  1. €1,000
  2. €10
  3. €600
Show the answer

€1,000

AC = AVC + AFC = €10. TC = AC × Q = €10 × 100 = €1,000. The €600 distractor is variable cost only; €10 is average cost.

Ordinary Level

Asked on 4 of the last 5 Ordinary Level papers, most recently in 2025. most years

Every paper, year by year

YearWhere it came up
2025Q13
2024Q13
2023Q14
2022Q7
2021Not asked

Links open the State Examinations Commission’s paper for that year.

More Costs, revenue & profit questions

Costs, revenue & profit, 2 marks

Which is a fixed cost for a café?

  1. Coffee beans
  2. Takeaway cups
  3. Rent on the premises
Show the answer

Rent on the premises

Fixed costs do not change with output in the short run. Rent must be paid whether the café sells 10 coffees or 1,000. Beans and cups are variable costs.

Costs, revenue & profit, 3 marks

Extra cooks in a small kitchen eventually add less and less extra output. This is?

  1. The law of demand at work
  2. The law of diminishing returns
  3. Economies of scale in a kitchen
Show the answer

The law of diminishing returns

When a variable factor (cooks) is added to a fixed factor (the kitchen), each extra worker eventually adds less output than the one before. This makes marginal cost rise.

Costs, revenue & profit, 3 marks

A firm sells 40 units at €6 each. Its total cost is €180. Its profit is?

  1. €60
  2. €240
  3. €34
Show the answer

€60

Total revenue = price × quantity = €6 × 40 = €240. Profit = total revenue - total cost = €240 - €180 = €60.

Other Economics topics

All of Leaving Cert Economics