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Economics (AS & A Level) · Oct / Nov 2021 · Paper 32 · Question 12

9708Differing objectives and policies of firms

The diagram shows a firm in imperfect competition. It changes its objective from profit maximisation to revenue maximisation. What effect will this have on the firm’s output?

  1. Adecreases from T to R
  2. Bdecreases from U to T
  3. Cincreases from S to T
  4. Dincreases from S to U

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Correct answer: C. increases from S to T

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