Economics 9708 · AS & A Level · 7.8

7.8 — practice question

The diagram illustrates a firm’s cost and revenue curves. The firm alters its objective from sales revenue maximisation to profit maximisation. In the short run, how would this change influence the following groups? customers / workers

  • Acustomers: benefit workers: benefit
  • Bcustomers: benefit workers: lose
  • Ccustomers: lose workers: benefit
  • Dcustomers: lose workers: lose

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