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1.4 Production, costs and revenue

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Question 10

A firm employs three factors of production: capital, land and labour. The table below shows how the firm's output is affected by changing the amount employed of these factor inputs.

Units of outputUnits of capitalUnits of landLabour (Number of workers)
200101530
6004060120
120080120240
1800100150300
2400150225450

The firm experiences constant returns to scale when it increases its output from

A

200 to 600 units.

B

600 to 1200 units.

C

1200 to 1800 units.

D

1800 to 2400 units.

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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