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1.4 Production, costs and revenue

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Question 48

Clara runs an artisanal sourdough micro-bakery from a rented commercial kitchen. Her daily costs of production are given in the table below:

Cost ItemCost
Commercial kitchen hire£120 per day
Assistant baker's wage£80 per day
Flour, yeast, and salt£1.10 per loaf
Eco-friendly paper packaging£0.30 per loaf

Assuming Clara produces and sells 50 loaves of sourdough bread per day, what is the average cost of a loaf of sourdough bread?

£3.80£3.80£3.80

£5.40£5.40£5.40

£1.40£1.40£1.40

£5.10£5.10£5.10

1.4 Production, costs and revenue Questions

  1. A Level
  2. /Economics
  3. /1.4 Production, costs and revenue