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1.4 Production, costs, revenue and profit

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Question 84

Vale Orchard packs fruit into boxes. It rents one packing line throughout the month. At the highest output, it adds a second shift and supervisors have to coordinate work across both shifts.

Boxes packed per monthAverage cost per box
2,000£1.20
6,000£0.80
10,000£1.00

Using the information provided, analyse how using the packing line more fully and introducing a second shift could affect Vale Orchard's average cost.

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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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