Economics (AS & A Level) · Feb / March 2022 · Paper 32 · Question 8

A firm operating in an imperfectly competitive market decides to change its objective from sales revenue maximisation to sales volume maximisation. Why might it have decided to do this?

1. Aincrease short-run profits: no; maximise short-run market share: no; minimise short-run average costs: yes
2. Bincrease short-run profits: no; maximise short-run market share: yes; minimise short-run average costs: no
3. Cincrease short-run profits: yes; maximise short-run market share: no; minimise short-run average costs: yes
4. Dincrease short-run profits: yes; maximise short-run market share: yes; minimise short-run average costs: no

As printed in the paper