Skip to content

Course home

Sign up

1.4 Production, costs and revenue

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293
Question 84

A micro-brewery produces and sells kegs of craft IPA. In a typical month, it produces and sells 250 kegs at £120 each, incurring total costs of £18,500. During a month when the brewery is closed for annual safety inspections and produces zero kegs, it still incurs standing costs of £4,200.

What are the brewery's total variable costs in a typical month?

A

£4,200

B

£11,500

C

£14,300

D

£25,800

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.

Question bank