A craft distillery produces and sells premium gin to local retailers. The distillery currently sells 800 bottles of gin each month; its monthly total costs are £28,000\pounds 28,000£28,000, which includes £12,000 \pounds 12,000\,£12,000 of fixed costs. The gin is sold at a wholesale price of £45 \pounds 45\,£45 per bottle. Due to a successful local marketing campaign, monthly sales increase to 1,100 1,100\,1,100 bottles.
Other things remaining the same, the distillery's profit per month increases by:
£3,000\pounds 3,000£3,000
£7,500\pounds 7,500£7,500
£9,000\pounds 9,000£9,000
£13,500\pounds 13,500£13,500
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.