Economics 2281 · O Level · Firms' costs, revenue and objectives
Firms' costs, revenue and objectives — practice question
A greater proportion of agricultural markets are nearer to perfect competition than are markets for manufactured goods and services. Business organisations do not always pursue the same objectives, and these objectives can also differ between markets. In $2017$, the Nigerian government applied supply-side policy measures to shape firms’ goals and performance in a variety of markets, while also bringing down firms’ average production costs.
(a)[2]
Identify two features of perfect competition.
(b)[4]
Explain two objectives a business organisation may pursue.
(c)[6]
Analyse the main reasons why firms differ in size.
(d)[8]
Discuss whether the use of supply-side policy measures by a government will, or will not, reduce firms’ average production costs.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A large number of buyers and sellers” …