Marcus's gourmet coffee cart in a business park sells fresh lattes. He has the following costs of production:
| Cost Item | Cost |
|---|---|
| Pitch rental | £45 per day |
| Barista's wages | £55 per day |
| Coffee beans, milk, and syrup | £0.65 per cup |
| Disposable cup and lid | £0.15 per cup |
Assuming Marcus sells 80 cups of latte per day, what is the average cost of a cup of latte?
£1.25
£1.49
£1.90
£2.05
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.