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

Firms’ costs, revenue and objectives — practice question

A large computer company announced that its profits had fallen below the forecasted figure. What could have led to this?

  • Aincreased advertising costs that greatly improved sales
  • Blow prices that made the company’s product competitive
  • Cnew technology that reduced costs
  • Dreduced sales and low prices

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