Economics (AS & A Level) · Oct / Nov 2022 · Paper 33 · Question 12

The diagram shows the cost and revenue curves for a monopoly market structure. A monopoly was producing at P1Q1 but changed its aim and now produces at P2Q2. What would not have caused this change?

1. AIt has stock it wants to sell.
2. BIt is concerned about new entrants.
3. CIt wants to benefit from greater economies of scale.
4. DIt wants to maximise profits.

As printed in the paper