CAIE A-Level Economics 7.8.1 Profit maximisation
Practise finding the profit-maximising output from cost and revenue evidence and contrasting it with non-profit objectives.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- A2
Exam points
- select the output where MC equals MR on a firm's revenue and cost diagram
7.8.1—Profit maximisation question 1
In the diagram
M C= marginal cost; A C= average cost; M R= marginal revenue; A R= average revenue.
What will be the output of a profit-maximising firm whose cost and revenue functions are shown above?
A
OW
B
OX
C
OY
D
OZ
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