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1.4 Production, costs, revenue and profit

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Question 93

A cosmetics producer can use a cheaper ingredient that is likely to pollute a local river, or a safer ingredient that raises its costs. Which statement best describes the choice?

[1]
A

Choosing the cheaper ingredient guarantees higher long-run profit

B

Ethical considerations matter only when total revenue is falling

C

The safer ingredient may reduce short-run profit but better protect local residents

D

Using the safer ingredient will necessarily increase sales by more than costs

Markscheme

1.4 Production, costs, revenue and profit Questions

  1. GCSE
  2. /Economics
  3. /1.4 Production, costs, revenue and profit

138 exam-style questions on AQA GCSE Economics 1.4 Production, costs, revenue and profit, covering 1.4.1a Business objectives, 1.4.1b Types of costs and revenue, 1.4.1c Calculating profit, 1.4.1d Profit as an incentive to produce, 1.4.1e Moral and ethical considerations, 1.4.2a Production versus productivity, 1.4.2b Factors and benefits of productivity, 1.4.3a Economies of scale and business behaviour, 1.4.3b Types of economy of scale, and 1.4.3c Diseconomies of scale. Each one has a worked solution and a mark scheme showing where the marks go.

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