A boutique eco-friendly subscription service, GreenCrate, decides to transition its primary business objective from revenue maximisation to profit maximisation. Assuming a downward-sloping demand curve and positive marginal costs (MC>0MC > 0MC>0), this change in objective will lead to:
an increase in the subscription price and a decrease in total revenue
a decrease in the subscription price and an increase in total revenue
an increase in the volume of subscriptions sold and an increase in profit
a decrease in the subscription price and an increase in profit
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.