A bakery is considering a machine that would raise output from 4,000 to 5,500 loaves a week. Weekly total cost would rise from £6,800 to £8,250. Each loaf sells for £2, but the bakery is uncertain whether all the additional output can be sold. Evaluate whether purchasing the machine is likely to improve the bakery's performance.
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.