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1.4 Production, costs, revenue and profit

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Question 101

A firm's average cost falls after it expands. Its selling price and number of units sold stay unchanged. Which pair of effects is most likely?

[1]
A

Profit per unit falls and total profit falls

B

Profit per unit rises and total profit rises

C

Profit per unit rises and total profit stays unchanged

D

Total cost must fall and total profit rises

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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