Throughout 2017, the Brazilian paper industry was flourishing. Its total revenue went up, and it employed a larger quantity of better-quality factors of production. By the end of 2017, Brazil’s biggest paper producer merged with an Indonesian paper-making company. The pattern in Brazil’s coffee industry was not the same as that of paper. Brazilian coffee saw demand drop and total revenue decline.
(a)[2]
Define what is meant by total revenue.
(b)[4]
Explain two distinctions between capital and labour.
(c)[6]
Analyse the possible effects on consumers of a merger involving two paper-producing firms.
(d)[8]
Discuss whether demand for coffee will probably rise in the future.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Overall sales income” …