Economics 9708 · AS & A Level · 7.8

7.8 — practice question

The diagram depicts a firm’s cost and revenue curves. The firm switches its objective from sales revenue maximisation to profit maximisation. Which groups are most likely to be winners and losers as a result of this change?

  • Awinners: customers; losers: managers
  • Bwinners: managers; losers: workers
  • Cwinners: workers; losers: shareholders
  • Dwinners: shareholders; losers: customers

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