Economics 9708 · AS & A Level · 7.8

7.8 — practice question

The diagram illustrates a firm operating under imperfect competition. It alters its objective from profit maximisation to revenue maximisation. What effect will this have on the firm’s output?

  • Adecreases from T to R
  • Bdecreases from U to T
  • Cincreases from S to T
  • Dincreases from S to U

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