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1.4 Production, costs and revenue

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Question 70

Extract B: Operating a Vertical Microgreen Farm

As vertical farming technology becomes more accessible, urban agricultural startups are navigating high initial setups. A head grower remarked, "while our LED lighting systems and automated shelving racks require the same power and leasing payments monthly, our spending on organic seeds, growing media, and biodegradable packaging scales directly with every single tray of microgreens we harvest for local restaurants..." (line 12).

Question: Define the term 'variable costs' as referred to in Extract B (line 12).

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Markscheme

1.4 Production, costs and revenue Questions

  1. A Level
  2. /Economics
  3. /1.4 Production, costs and revenue

156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.

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