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1.4 Production, costs, revenue and profit

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Question 40

A firm assembles desk lamps. Its fixed costs are £18,000 a month, and each desk lamp adds £8.00 of variable cost. The firm raises its monthly output from 1,500 desk lamps to 3,000 desk lamps.

Calculate the percentage change in the firm's average cost per desk lamp.

Show your working.

[4]
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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