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1.4 Production, costs, revenue and profit

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Question 15

Choose one answer.

Which situation shows a technical economy of scale?

[1]
A

A commercial laundry employs a specialist operations manager to organise its separate sites.

B

A commercial laundry serves hotels and hospitals so a downturn in one market affects less of its income.

C

A commercial laundry installs a large automated folding line that is economical only at high output.

D

A commercial laundry buys detergent in larger quantities and pays less for each litre.

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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