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Economics (AS & A Level) · May / June 2021 · Paper 31 · Question 12

9708Differing objectives and policies of firms

What identifies the output level required to meet the stated aim of a monopoly firm?

  1. Amaximum efficiency — marginal cost is at a minimum
  2. Bprofit maximising — marginal cost is equal to average revenue
  3. Cquantity of sales maximising — marginal revenue is equal to average cost
  4. Drevenue maximising — marginal revenue is zero

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Correct answer: D. revenue maximising — marginal revenue is zero

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