Pearson Edexcel IAL Economics 3.3.1.3a Different business objectives: ob

Practise comparing profit, revenue, sales and satisficing objectives using diagrams, extracts and decisions about price, output and profit.

Exam points

interpret cost and revenue diagrams to match profit, revenue or sales-maximising output
evaluate whether firms prioritise revenue growth, profit or social objectives in real contexts
explain how changing objectives affects price, output and supernormal profit

[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

No change

Increase

Decrease

Increase

No change

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3.3.1.3a - Different business objectives: objectives • profit maximisation • revenue maximisation question 1