Economics 9708 · AS & A Level · 7.8

7.8 — practice question

The diagram illustrates a firm’s cost and revenue curves. The firm switches its objective from profit maximisation to sales revenue maximisation. Which groups are likely to gain and which are likely to lose as a result of this change?

  • Acustomers / shareholders
  • Bmanagers / customers
  • Cworkers / managers
  • Dshareholders / workers

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