A commercial laundry charges £9 for every load it cleans and currently makes a total profit of £2,600 a week. It is considering four possible weekly output levels. The table shows the average cost per load at each one.
| Loads cleaned each week | Average cost per load (£) |
|---|---|
| 1,600 | 7.40 |
| 1,800 | 7.50 |
| 2,000 | 7.70 |
| 2,400 | 8.00 |
Using the table, at which output level would the laundry's total profit be higher than it is now?
2,400 loads a week
1,600 loads a week
1,800 loads a week
2,000 loads a week
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.