Economics 9708 · AS & A Level · 7.8

7.8 — practice question

The diagram illustrates a firm that maximises sales revenue. Which statement is correct for this firm?

  • AOutput takes place at R and price is at its highest.
  • BOutput takes place at S and profits are maximised.
  • COutput takes place at T and price is equal to the profit maximising price.
  • DOutput takes place at T and price is lower than the profit maximising price.

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