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1.4 Production, costs and revenue

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Question 52

A large-scale medical diagnostics laboratory transitions from a system where individual technicians conduct entire multi-stage blood tests to a highly specialized system where each technician is responsible for a single, repetitive step of the testing process.

Which one of the following is the most likely microeconomic outcome of this increased division of labour?

A

An increase in the time wasted by technicians transitioning between different testing instruments

B

A rise in the average cost of training required for new staff to become productive

C

A reduction in the unit cost of testing due to gains in worker speed and dexterity at specific tasks

D

An expansion in the range of transferable skills acquired by individual technicians

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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