Economics 0455 · IGCSE · Firms’ costs, revenue and objectives

Firms’ costs, revenue and objectives — practice question

At what point will a firm maximise its profits?

  • Awhen it excludes a rival supplier from the market
  • Bwhen it produces where average cost and average revenue are equal
  • Cwhen it sells as many products in as many different markets as it can
  • Dwhen the difference between total cost and total revenue is greatest

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