A producer of protective gloves is considering replacing hand-operated cutting equipment with computer-controlled cutting. Its forecasts are shown in the table.
| Measure | Hand-operated cutting | Computer-controlled cutting |
|---|---|---|
| Monthly output | 24,000 pairs | 36,000 pairs |
| Monthly total cost | £192,000 | £252,000 |
| Workers | 40 | 40 |
Analyse the likely effects on productivity and average cost if the producer changes to computer-controlled cutting.
83 exam-style questions on OCR GCSE Economics 2.6 Production, covering 2.6.1 Role of producers, 2.6.2 Importance of production and productivity, 2.6.3 Calculate cost, revenue, profit and loss, 2.6.4 Explain cost, revenue, profit and loss, 2.6.5 Cost, revenue and profit for producers, and 2.6.6 Economies of scale. Each one has a worked solution and a mark scheme showing where the marks go.