Costs

Q4 Work out variable cost per unit at 12 000 garments from a clothing maker's total cost schedule.

Q4 Identify the price at which an Argentine sweetcorn grower keeps going short-run but would quit long-run.

Q4 Work out fixed cost per unit at 20 000 pairs of jeans, using a clothing maker's total cost schedule.

Q7(a) Work out how AstraZeneca's total costs moved from 2021 to 2022, using its revenue and profit table.

Q7 Evaluate microeconomic consequences of dearer energy for hotels or another industry you select, with a Scarborough hotel now paying £8 000 monthly rather than £2 000.

Q2 Work out the marginal cost of the third haircut from a small salon's fixed and variable cost table.

Q7(a) Work out how Uniqlo's total costs changed between 2021 and 2022 from its revenue and profit figures.

Q4 Deduce how a 6.5% rent rise changes profit and price for an Indian grocery chain earning supernormal profits.

Q5 Work out average fixed cost at an output of 10 000 shirts from the maker's total cost schedule.

Q1(c) Discuss what dearer gas would mean for a gas-intensive producer, supported by a cost and revenue diagram.

Q1 Given a Thai cafe's short-run marginal cost curve, pick the reason it rises (decreasing returns to scale / rising fixed costs / diminishing returns / diseconomies of scale).

Q2 Given a Botswanan textile manufacturer's output, total revenue, total costs and total fixed costs, calculate its average variable cost.

Q7(a) Using Figure 1, calculate with workings how much gas's wholesale price changed in percentage terms over the year to 1 April 2022.

Q7(d) Examine how dearer wholesale natural gas feeds through to UK gas suppliers' production costs, using Figure 1 and Extract A.

Q6(d) Discuss what climbing wage, minimum wage and rent bills (Extract A) do to coffee shop profits; a cost and revenue diagram is needed.

Q3 From the battery maker's total cost table covering outputs of 0 to 400, work out average variable cost when 300 units are produced.

Q6(a) Using Extract A, explain how diminishing marginal productivity of labour bears on cabin crew numbers (context: United Airlines trimming crew on international flights).

Q2(c) With a cost and revenue diagram, discuss what spending on new technology does to the profits of German firms (Extract C).

Q4 Using a table of a US sports footwear producer's total costs from 0 to 7 units, identify between which outputs diminishing returns start to set in.

Q7(c) Analyse two factors that could explain why coffee bean supply grew from 2015 to 2019, using Figure 2 and Extract A.

Q3 Select, from the four diagrams shown, the one depicting the average fixed cost curve for a firm.

Q5 Given a textbook publisher's total cost table for outputs up to 5 000, work out average variable cost when output is 4 000.

Q7(a) Work out what Tata Steel spent in total making steel during 2019, using Figures 1 and 2.

Q4(a) From the doughnut maker's daily average cost curve, explain how total cost behaves once output rises beyond Z.

Q4(b) Beyond output Z, state the direction taken by average fixed cost, by average variable cost and by marginal cost.

Q4(c) Given an average selling price of £2, average variable cost of 40% of the selling price and fixed costs of £300 per day, calculate total costs per day at an output of 400 doughnuts.

Q2(c) Discuss why so many UK high street chains are shutting stores or collapsing altogether; include a cost and revenue diagram.

Q4(b) Given 2017 profit of £17.5m (up 21.5% on 2016) and 2017 revenue of £75.8m (up 4.1% on 2016), calculate GoCompare's total costs in 2016.

Q5(a) Using a breakdown of the revenue from a £2.27 Starbucks cappuccino, identify which is a fixed cost. (coffee / milk / packaging / rent)

Q5(b) Set out how fixed costs differ from variable costs.