Table 1 shows total costs and profit for different levels of output produced by a firm.
| Output (units) | Total cost (£) | Profit (£) |
|---|---|---|
| 40 | 700 | 500 |
| 80 | 1100 | 900 |
| 120 | 1520 | 1000 |
When the firm increases its output from
40 to 80, the price falls by £4
40 to 80, the price falls by £6
80 to 120, the price falls by £3
80 to 120, the price falls by £4
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.