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