Economics 9708 · AS & A Level · 7.8

7.8 — practice question

A firm stops following a policy of horizontal expansion and instead adopts backward vertical growth. What does this imply is most likely true about the firm’s objectives?

  • AIt now prefers revenue maximisation to cost minimisation.
  • BIt now prefers sales maximisation to profit satisficing.
  • CIt now prefers security of sales to profit maximisation.
  • DIt now prefers security of supplies to growth of market share.

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