Economics 9708 · AS & A Level · 7.8

7.8 — practice question

The diagram illustrates a firm’s costs and revenues in an imperfect market. At present, the firm is producing at the output level that maximises profit. It wants to produce at the output level that maximises sales. What change would there be in its output?

  • AOW to OX
  • BOW to OY
  • COW to OZ
  • DOY to OZ

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