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O-LevelCommerceProductionMay/June 2025Paper 1 Q21 Mark

A business is introducing greater specialisation in the production of chocolate. How would its workers benefit from greater specialisation in the production process?

ALower costs will mean lower prices leading to a higher standard of living.
BProductivity will rise enabling the business to pay higher wages.
CThe business will benefit from economies of scale which will reduce its average costs.
DThere will be a need for more managers to take charge of different stages of production.

✓ Correct Answer

The correct answer is B: Productivity will rise enabling the business to pay higher wages.

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This O-Level Commerce Question

Topic

This multiple-choice question tests Production in O-Level Commerce (syllabus code 7100). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Commerce May/June 2025 examination, Paper 1 Variant 2.

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