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3.2 Business objectives

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Question 3

If Spotify is currently a profit-maximising firm but changes its corporate objective to revenue maximisation, it can be deduced that Spotify will move from setting prices at which:

marginal revenue equals marginal costs to where marginal revenue equals zero

marginal revenue equals zero to where marginal revenue equals marginal costs

marginal revenue equals marginal costs to where average revenue equals average costs

average revenue equals average costs to where marginal revenue equals marginal costs

3.2 Business objectives Questions

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  3. /3.2 Business objectives