Edexcel A-Level Economics A2 3.3.1 3c Formulae for Different Business Objectives Profit Maximisation Revenue Questions

Practise matching MR = MC and AR = AC conditions to profit maximisation or sales volume maximisation without loss in business-objective scenarios and diagrams.

Exam points

identify profit maximisation where marginal revenue equals marginal cost
identify sales maximisation without loss where average revenue equals average cost

[Maximum number: 1]

Mara Phone is a new smartphone developed by the African conglomerate, Mara Group. The business is aiming to grow its market share by maximising its sales.

Which one of the following conditions is necessary for Mara Group to maximise sales volume of this new phone without making a loss?

Marginal revenue equals marginal cost

Average revenue equals average cost

Marginal revenue equals zero

Average revenue equals marginal revenue

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