Economics 9708 · AS & A Level · 7.5

7.5 — practice question

The diagram illustrates a firm’s cost and revenue curves. What might account for the firm producing output OQ?

  • AIt is operating in a contestable market.
  • BIt is operating in a perfectly competitive market.
  • CIt is seeking to maximise profits.
  • DIt is seeking to maximise sales revenue.

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