A language tuition firm provides 800 lessons at £22 each in one month and incurs total costs of £18,200. In the next month, it provides 900 lessons at £23 each and incurs total costs of £19,800. Which statement correctly compares its financial outcome in the two months?
A loss changes into a profit because the increase in revenue is greater than the increase in total costs.
A profit changes into a loss because the increase in total costs is greater than the increase in revenue.
The loss becomes larger because the increase in total costs is greater than the increase in revenue.
The profit becomes larger because revenue exceeds total costs in both months.
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.