Economics 9708 · AS & A Level · 7.8

7.8 — practice question

A firm can choose from five output levels. The table lists the total cost and total revenue for each level of output. The firm may sell all of the output it makes. output (units) / total cost ($) / total revenue ($) 1000 / 8 000 / 10 000 2000 / 12 000 / 18 000 3000 / 19 000 / 24 000 4000 / 23 000 / 28 000 5000 / 25 000 / 25 000 The firm chooses to make 4000 units. What objective is the firm pursuing?

  • Ato maximise profit
  • Bto maximise sales
  • Cto maximise revenue
  • Dto minimise average costs

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