Cambridge IGCSE Business Studies practice

Paper 1 structured question: Costs, scale of production and break-even analysis

Try the question first, then check the answer and practise the same topic again.

At a glance

Paper

Marks

Topic

Costs, scale of production and break-even analysis

Exam-style question

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Paper 1Short Answer and Data Response1 marks

A business is considering expanding its production capacity to reduce costs.

Description

The business currently operates at a small scale and is evaluating the benefits of increasing production.

a
Identify one type of economy of scale that the business could benefit from by expanding production.
Your answer
Aim for approximately 1 distinct marking point.
[1]

0 of 1 part answered

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Paper 1Short Answer and Data Response2 marks

Description

The company has increased its workforce significantly but has noticed a decline in productivity and employee satisfaction.

a
Explain two potential diseconomies of scale that the company might be experiencing.
Your answer
Aim for approximately 2 distinct marking points.
[2]