Economics 0455 · IGCSE · Firms and production

Firms and production — practice question

A company moves away from making single items of wooden furniture by hand and begins a mechanised production method that uses the division of labour. Which combination of outcomes is most likely to follow?

  • Aworker motivation will increase; average total cost will increase; total costs will increase
  • Bworker motivation will decrease; average total cost will increase; total costs will increase
  • Cworker motivation will decrease; average total cost will decrease; total costs will increase
  • Dworker motivation will decrease; average total cost will decrease; total costs will decrease

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI