A parcel-sorting company is considering increasing its weekly output. Its total costs at different levels of output are shown below.
| Weekly output (parcels) | Total cost |
|---|---|
| 2,400 | £24,000 |
| 5,000 | £37,500 |
| 8,000 | £72,000 |
Calculate the average cost per parcel at each level of output and explain what the results suggest about the company's scale of production.
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.