A firm's output rises from 200 to 300 units. Total cost rises from £2,400 to £3,300, while price remains £15. Which statement is correct?
Average cost rises and profit falls
Average cost is unchanged and profit rises by £900
Average cost falls and profit rises by £600
Average cost falls and profit rises by £1,500
30 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.