The wage of labour in a firm increases. The table shows total fixed and total variable costs at different levels of output for a firm. The following information refers to a firm producing shoes. At which level of output does the firm maximize profits? What is most likely to lead to an improvement in labor productivity in an industry? What happens as output rises according to the given cost information? At which level of output does the firm maximize profits? Which statement proves there has been an increase in productivity for a factory making tractors? When do economies of scale take place? A firm produces 1000 units and has a total cost of $50 000. The variable cost per unit produced is $40. What is the total fixed cost of the firm? The following information refers to a firm producing shoes. At which level of output does the firm maximise profits? Firms can grow by increasing the internal scale of their operations. What might be a disadvantage of this to the firm? A government owns and runs an airline. Which combination of ownership and sector is this? In the short run, a firm calculates its total fixed cost, total variable cost, and total cost. It then plots a graph showing how they change as output increases. What happens to the lines showing the total variable cost and total cost as output increases? A firm has fixed costs of $1000. The table shows the variable cost at different levels of output. If the goods are sold for $500 each, how much profit will be made from the sale of 4 units? What could cause internal diseconomies of scale for a firm? The table shows the output and total costs of a small firm. What is the average fixed cost of producing 10,000 units? Firm X supplies bricks and decides to merge with firm Y that also supplies bricks. Which form of merger has taken place? At which level of output does total variable cost exceed total fixed cost? Which combination is usually found in a monopoly? What is usually considered to be an advantage to a firm of being a monopoly? The diagram shows a firm’s total cost (TC) curve. What is the average variable cost if the firm produces an output of OQ? What will occur when there is a conglomerate merger? What is total revenue? How would a state-owned oil refining firm be classified? A company mining cobalt invests in machinery to replace some workers. Eventually diseconomies of scale occur. What could cause this situation? Why are many hairdressers able to operate as small businesses? Dimitry owns a firm that produces and sells bottles of lemonade. He only sells one size of bottle. How would Dimitry calculate the total revenue of the firm? Which market is likely to be the most competitive? What is an advantage of competitive markets? Which cost of production falls continuously as output increases? A Swedish furniture maker bought a Romanian firm that owned 83,000 hectares of trees. Which type of merger is this most likely to be? What is calculated when price is multiplied by the quantity demanded of a product? A firm employs 10 workers. Each worker is paid a weekly wage of $200 and produces 50 goods per week. What is the average cost of labour per good produced? How would advertising a good result in a retail firm increasing its market share? What describes the total revenue of a firm? The diagram shows the total revenue (TR) and total cost (TC) of a firm in a market. At which level of output will the firm maximise profits? The table shows the average revenue of a firm at various levels of output. What happens to total revenue as output rises? For some months, the price of petrol (gas) decreased significantly. How would this affect a delivery firm that delivers goods for other firms using petrol (gas) powered vehicles? The size of the domestic car industry in Japan has enabled Japanese car producers to be more price competitive than rival car producers. What is an explanation for this? What is a major advantage of a horizontal merger compared with a conglomerate merger? Which government policy will increase productivity? Which result of increased specialization in a firm is an advantage for the firm, but a disadvantage for some of the workers in the firm? The diagram shows the imposition of a subsidy on a product supplied by a firm. Which area represents the total revenue of the firm including the subsidy? The diagram shows the total cost curve for a firm. What can be concluded about the firm? The table shows the average total cost of a firm over a range of output. What happens after 4 units are produced? Two car manufacturers agree to merge. Which outcome would be a disadvantage for customers? The table shows the output of cakes from four bakeries, A–D. Which bakery has the highest labour productivity? What is an advantage of labour-intensive production and what is an advantage of capital-intensive production? A firm imports 20 high quality bicycles into the US at a cost of $3000 each. It sells them all, making a profit of $1000 per bicycle. What is the firm’s average revenue? The diagram shows total cost (TC), total fixed cost (TFC) and total variable cost (TVC). Which costs are shown by W, X, and Y? The table shows output and total cost of a firm with four production methods, A–D. Which method causes diseconomies of scale as the firm expands production from 1000 to 3000 units? A clothing manufacturer expands by taking over a clothing retailer. Which type of merger is this? The diagram shows the fixed costs, variable costs, and total costs of a firm at output S. Which distance represents the firm’s variable costs? A manufacturer of medical supplies benefits from improved road links to its main markets. What benefit definitely occurs as a result? Which row shows an essential characteristic of competitive markets and monopoly markets? What will happen to a firm that expands to take advantage of economies of scale? The table shows total fixed and total variable costs at different levels of output for a firm. What happens as output rises? Which characteristics are found in a monopoly?