A local honey producer, 'Bee-Sweet', has recorded its weekly costs and profits for different output levels of honey jars, as shown in the table below.
| Output (jars) | Total Cost (£) | Profit (£) |
|---|---|---|
| 50 | 420 | 180 |
| 100 | 740 | 260 |
| 150 | 1110 | 240 |
When the firm increases its weekly output from
50 to 100, the price falls by £1
50 to 100, the price falls by £2
100 to 150, the price falls by £2
100 to 150, the price falls by £1.50
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.