Skip to content

Course home

Sign up

4 International trade and the global economy

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135136137138139140141142143144145146147148149150151152153154155156157158159160161162163164165166167168169170171172173174175176177178179180181182183184185186187188189190191192193194195196197198199200201202203
Question 43

A UK ceramic tile manufacturer sells 18,000 tiles each month to UK customers. It starts selling to customers in other countries, and monthly sales increase to 30,000 tiles. Its factory and machinery remain the same.

Why may the average cost of each tile fall after the manufacturer starts exporting?

[1]
A

The cost of the factory and machinery is spread across 30,000 tiles rather than 18,000 tiles

B

The extra tiles make the cost of the factory and machinery higher for each tile

C

The cost per tile remains the same because the factory and machinery remain the same

D

The extra sales make the total cost of the factory and machinery fall

Markscheme

4 International trade and the global economy Questions

  1. GCSE
  2. /Economics
  3. /4 International trade and the global economy

Question bank