An engineering firm specializes in manufacturing bespoke cargo e-bikes for urban delivery fleets. In its first year of operation, the firm builds and sells 150 cargo e-bikes. The firm's total revenue from these sales is £675,000£675,000£675,000, and its total production and operating costs amount to £405,000£405,000£405,000.
The average profit that the firm earns on each cargo e-bike is:
£2,700£2,700£2,700
£1,800£1,800£1,800
£4,500£4,500£4,500
£7,200£7,200£7,200
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.