A pottery is considering a proposed weekly production plan.
| Current plan | Proposed plan | |
|---|---|---|
| Output | 600 plant pots | 900 plant pots |
| Quantity sold | 580 plant pots | 850 plant pots |
| Fixed cost | £2,400 | £4,050 |
| Variable cost per plant pot | £8 | £7 |
| Price per plant pot | £15 | £14 |
Compared with the current plan, what would the proposed plan do to the pottery's average cost and weekly profit?
Lower average cost by £0.50 and raise weekly profit by £50
Lower average cost by £1.00 and raise weekly profit by £50
Lower average cost by £0.50 and raise weekly profit by £450
Lower average cost by £1.00 and raise weekly profit by £450
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.