Economics 9708 · AS & A Level · 7.8

7.8 — practice question

The diagram depicts a firm operating under imperfect competition. It altered its objective from profit maximising to sales revenue maximising. What type of profit was it earning in each situation?

  • Aprofit maximising: normal profit; sales revenue maximising: supernormal profit
  • Bprofit maximising: subnormal profit; sales revenue maximising: normal profit
  • Cprofit maximising: supernormal profit; sales revenue maximising: normal profit
  • Dprofit maximising: supernormal profit; sales revenue maximising: supernormal profit

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