OCR Economics 2.6 revision

The table shows the cost of insurance for a car, depending on the age of the driver. Which of the following statements is correct?

• A 20-year-old driver pays twice as much as a 50-year-old driver

• A 30-year-old driver pays £500 less than a 20-year-old driver

• The smallest change in insurance payment is between the ages of 30 and 40

• The largest percentage change in insurance payment is between the ages of 40 and 50

As a result of its growth, a business can now afford to advertise on local radio. This is an example of which economy of scale?

• Financial

• Increased dimensions

• Marketing

• Purchasing

The table shows the total revenue of a firm. If output increases from 1 to 4, what is the change in the firm’s average revenue?

• + £28

• - £3

• • £10

• £18

Which of the following is an example of an economy of scale?

• Bulk-buying of materials

• Increased raw material costs

• Sustainable production

• Unemployment

The table shows a firm’s output and its average costs of production. It can sell output at £3 per unit. What is the maximum possible profit?

• £0

• £20

• £40

• £60

The table shows some cost and output data for 2018 for a firm producing gloves. In 2019, variable costs increased by 15% but fixed costs and output did not change. Calculate the firm’s total costs in 2019.

• £6900

• £18 000

• £18 900

• £20 700

Which of the following is an example of an external economy of scale?

• Bulk-buying

• Financial

• Location

• Risk-bearing

Which statement is correct?

• Total revenue increases from 0 to V and then falls

• Total revenue increases from 0 to U and then falls

• Total revenue increases from 0 to T and then falls

• Total revenue increases at all levels of output