Economics 9708 · AS & A Level · 7.8

7.8 — practice question

A firm in an imperfectly competitive market chooses to alter its objective from sales revenue maximisation to sales volume maximisation. Why could it have chosen to do this?

  • Aincrease short-run profits no; maximise short-run market share no; minimise short-run average costs yes
  • Bincrease short-run profits no; maximise short-run market share yes; minimise short-run average costs no
  • Cincrease short-run profits yes; maximise short-run market share no; minimise short-run average costs yes
  • Dincrease short-run profits yes; maximise short-run market share yes; minimise short-run average costs no

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