Economics 9708 · AS & A Level · 7.5

7.5 — practice question

The diagram displays the cost and revenue curves for a firm. The firm could aim to maximise either profit or revenue. Which price and quantity combination is correct for each case?

  • Amaximise profit: Q1P1; maximise revenue: Q3P3
  • Bmaximise profit: Q1P1; maximise revenue: P4Q4
  • Cmaximise profit: Q2P2; maximise revenue: Q3P3
  • Dmaximise profit: Q2P2; maximise revenue: Q4P4

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