Economics 9708 · AS & A Level · 7.8

7.8 — practice question

A company that secures capital by issuing shares must meet both shareholders’ expectations and the aims of management. Management wants to achieve maximum output at no profit. Which strategy would definitely stop this aim?

  • Afixing output where MC = MR in the long run
  • Boperating price discrimination to maximise revenue
  • Crewarding shareholders more than returns to innovation
  • Dseparating ownership and control of the firm

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