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Economics (AS & A Level) · Oct / Nov 2025 · Paper 31 · Question 7

9708Differing objectives and policies of firms

The diagram shows the cost and revenue curves of a firm. The firm changes its objective from revenue maximisation to sales maximisation. What will be the effect on quantity produced?

  1. Ait will decrease from Y to W
  2. Bit will decrease from Z to W
  3. Cit will increase from X to Y
  4. Dit will increase from X to Z

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Correct answer: D. it will increase from X to Z

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