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1.4 Production, costs, revenue and profit

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Question 99

A growing restaurant group negotiates a lower price for each oven it buys. Which pair of effects is most likely?

[1]
A

Financial economies of scale and a higher average cost

B

Managerial economies of scale and a lower total cost

C

Purchasing economies of scale and a lower average cost

D

Risk-bearing economies of scale and a higher variable cost

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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