A Drinks Factory Has Spare Capacity and Is Considering Taking

question 1

Multiple Choice

A drinks factory has spare capacity and is considering taking on a special order of 50,000 bottles. It usually charges 54p per bottle to recover its overheads. If its variable costs are £6.80 and it will incur distribution costs of £300 for every 1,000 bottles, what is the minimum price it should charge?

• A) £6.80
• B) £7.34
• C) £7.64
• D) £7.10

Identify the potential benefits of shifting the basis of taxation from income to consumption or other bases.

Understand the concepts of marginal and average tax rates.

Identify the types of taxes and their characteristics.

Analyze the impact of different tax systems on individual and government revenue.

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Definitions:

Equilibrium Constant

A numerical value that expresses the ratio of concentrations of products to reactants at equilibrium, specific for a given reaction at a given temperature.

Gibbs Free Energy

A thermodynamic quantity used to predict the feasibility of a reaction at constant temperature and pressure.

PKa Values

Quantitative measures that describe the acidity of a compound, representing the negative log of the acid dissociation constant (Ka).

Equilibrium Constant

A numerical value that represents the ratio of concentrations of products to reactants at equilibrium in a reversible chemical reaction.