3.2.1 Business objectives

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Question 2

A major subscription video-on-demand platform, VidiStream, currently operates under the corporate objective of sales maximisation (maximising subscriber volume subject to making at least normal profit). If VidiStream shifts its corporate objective to profit maximisation, it can be deduced that the platform will adjust its subscription rates and output to move from a position where:

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

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 ( $M R = M C$ )

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

3.2.1 Business objectives Questions

A Level
Economics
3.2.1 Business objectives

A Level
Economics Edexcel A
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