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1.4 Production, costs, revenue and profit

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Question 53

A regional ferry operator closes the crossings that carry the fewest passengers and cost the most to run, and raises fares on its busiest crossings. As a result, the number of passenger journeys falls and its total revenue falls slightly, but its total costs fall by much more than its total revenue. Which objective have these decisions most clearly achieved for the operator?

[1]
A

Sales growth

B

Increasing market share

C

Survival

D

Increasing profit

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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