A manufacturer tests two methods for producing identical travel bags. Under Method 1, each worker cuts the fabric, stitches the bag and fits the fasteners. Under Method 2, each of these tasks is assigned to a different group of workers.
| Method 1 | Method 2 | |
|---|---|---|
| Output per worker per day | 4 bags | 6 bags |
| Pay per worker per day | £96 | £96 |
Calculate the percentage increase in output per worker when the manufacturer changes from Method 1 to Method 2. Show your working.
Explain how the change from Method 1 to Method 2 is likely to affect the manufacturer's labour cost per bag.
84 exam-style questions on AQA GCSE Economics 1.2 Resource allocation, covering 1.2.1a Markets, 1.2.1b Allocation of resources, 1.2.1c Factor and product markets, 1.2.2a Primary, secondary and tertiary sectors, 1.2.2b Goods and services, 1.2.3a Specialisation and the division of labour, 1.2.3b How and why producers specialise, and 1.2.3c Costs and benefits of the division of labour. Each one has a worked solution and a mark scheme showing where the marks go.