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3.2.1 Business objectives

Question 2

A digital publishing company, 'PageTurn', currently operates to maximise its profits. If the board of directors decides to change its corporate objective to sales maximisation (volume maximisation subject to breaking even), it can be deduced that PageTurn will adjust its pricing and output from a level where:

marginal revenue equals zero ( $M R = 0$ ) to where average revenue equals average cost ( $A R = A C$ )

marginal revenue equals marginal cost ( $M R = M C$ ) to where average revenue equals average cost ( $A R = A C$ )

average revenue equals average cost ( $A R = A C$ ) to where marginal revenue equals marginal cost ( $M R = M C$ )

marginal revenue equals marginal cost ( $M R = M C$ ) to where marginal revenue equals zero ( $M R = 0$ )

Markscheme

3.2.1 Business objectives Questions

A Level
Economics
3.2.1 Business objectives

16 exam-style questions on Edexcel A A Level Economics 3.2.1 Business objectives. Each one has a worked solution and a mark scheme showing where the marks go.

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