Economics 9708 · AS & A Level · 7.8

7.8 — practice question

The diagram illustrates the cost and revenue curves of a monopoly market structure. A monopoly was producing at P1Q1 but altered its objective and now produces at P2Q2. What would not have led to this change?

  • AIt has stock it wants to sell.
  • BIt is concerned about new entrants.
  • CIt wants to benefit from greater economies of scale.
  • DIt wants to maximise profits.

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