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1.4 Production, costs, revenue and profit

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Question 26

A conference organiser increases the number of events it runs each month. Which one of the following is most likely evidence that coordination problems have created diseconomies of scale?

[1]
A

total cost rises in the same proportion as the number of events organised

B

average cost per event falls as one booking-system fee is spread over more events

C

average cost per event rises as venue and staffing schedules fail to match

D

average cost per event rises because venue owners raise hire charges for all organisers

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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