A pottery producer has enough kiln capacity to fire one batch today. The expected profit from each possible batch is shown in Table 1. The producer chooses the mugs batch.
| Batch | Expected profit |
|---|---|
| Mugs | £480 |
| Bowls | £420 |
| Vases | £300 |
What is the opportunity cost of this decision?
Expected profit from the vases batch
Expected profit from the bowls batch
Expected profit from the mugs batch
Total expected profit from both rejected batches
81 exam-style questions on AQA GCSE Economics 1.1 Economic foundations, covering 1.1.1a Needs and wants, 1.1.1b The central purpose of economic activity, 1.1.1c Key economic decisions, 1.1.1d The main economic groups, 1.1.2a The nature of an economic resource, 1.1.2b The four factors of production, 1.1.3a The basic economic problem and making choices, and 1.1.3b Opportunity cost. Each one has a worked solution and a mark scheme showing where the marks go.