Economics 9708 · AS & A Level · 7.8

7.8 — practice question

A firm alters its objective and decides to produce at the point where marginal revenue (MR) is zero rather than at the point where MR equals marginal cost (MC). Which explanation of this change is not correct?

  • AThe firm wishes to increase sales.
  • BThe firm wishes to increase its output.
  • CThe firm wishes to reduce prices.
  • DThe firm wishes to gain more profits.

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