A plant nursery grows potted herbs. It produced fewer herbs in April than in March. Table 1 shows two of the nursery's monthly costs, labelled Cost P and Cost Q.
| March | April | |
|---|---|---|
| Herbs produced | 4,000 | 3,000 |
| Cost P | £1,200 | £1,200 |
| Cost Q | £200 | £150 |
Which conclusion about the nursery's costs is supported by Table 1?
Cost Q is fixed, because each herb adds the same amount to it
Cost P is variable, because its cost per herb rose when output fell
Both costs are variable, because total costs fell when output fell
Cost P is fixed, because its total did not change when output fell
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.