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1.4 Production, costs, revenue and profit

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Question 22

An industrial laundry is increasing the number of hotel sheets it cleans each week. Which change would be most likely to produce a technical economy of scale?

[1]
A

Installing a large automated washing machine that can clean more sheets at a lower cost per sheet

B

Borrowing for new premises at a lower interest rate from a lender

C

Ordering detergent in much larger quantities to obtain a lower price per litre

D

Employing specialist managers to run staffing, transport and cleaning separately

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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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