Edexcel A-Level Economics A2 3.3.1 3a Different Business Objectives Objectives Profit Maximisation Revenue Maximisation Questions

Practise Edexcel IAL Economics 3.3.1.3a by comparing profit, revenue, sales and satisficing objectives using diagrams and business contexts.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • distinguish profit maximisation, revenue maximisation and sales-volume objectives using output, price and profit evidence
  • assess state-owned and private-sector objectives including profit, service, social and survival aims
  • evaluate business objectives through ownership-control divorce, contestability, survival, market share and short- or long-run aims

Edexcel A-Level Economics A2 3.3.1 3a Different Business Objectives Objectives Profit Maximisation Revenue Maximisation Questions question 1

[Maximum number: 1]

A profit maximising firm decides to change its objective to revenue maximisation.
Which one of the following combinations is the most likely impact of this decision?

Option

Supernormal profit

Price

A

No change

No change

B

Increase

Increase

C

Decrease

Decrease

D

Increase

No change

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