Efficiency and Productivity (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does capacity refer to in business operations?
What does capacity refer to in business operations?
Maximum output with available resources
What does operating with 40% spare capacity indicate?
What does operating with 40% spare capacity indicate?
Underutilisation & higher unit costs
What is typically the optimal level of capacity utilisation?
What is typically the optimal level of capacity utilisation?
Close to 100% with flexibility
Which problem occurs when operating at maximum capacity?
Which problem occurs when operating at maximum capacity?
Reduced flexibility for new orders
What does labour productivity measure?
What does labour productivity measure?
Output produced per worker in a period
If total costs are £150,000 and output is 7,500 units, what is the unit cost?
If total costs are £150,000 and output is 7,500 units, what is the unit cost?
£20 per unit
How does higher labour productivity affect unit costs and pricing?
How does higher labour productivity affect unit costs and pricing?
Lower unit costs, more competitive prices
What is a benefit of investing in new technology?
What is a benefit of investing in new technology?
Greater output from fewer employees
What happens to unit costs when capacity utilisation increases?
What happens to unit costs when capacity utilisation increases?
Fall (fixed costs spread over more units)
What happens to productivity if output stays constant but employees decrease?
What happens to productivity if output stays constant but employees decrease?
Productivity rises (improved efficiency)