An electric vehicle battery manufacturing plant uses automated robotic arms, specialized technicians, and lithium-ion cells to assemble battery packs. Over a three-month period, the plant increases its weekly output of battery packs by 25%.
Which of the following statements is definitely correct?
The output per technician (labor productivity) must have risen.
The total volume of output (production) has increased.
The average cost of producing a battery pack must have decreased.
The capacity utilization rate of the assembly plant must have increased.
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.