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1.4 Production, costs, revenue and profit

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Question 33

A fish-canning firm expands its weekly output from 20,000 tins to 30,000 tins. Over the same period, its average cost rises from 42p per tin to 47p per tin.

What do these figures show about the firm?

[1]
A

Its output per worker has increased

B

Its fixed costs are spread over fewer tins

C

It has experienced diseconomies of scale

D

It has experienced economies of scale

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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