An online ticket seller currently reveals a compulsory booking charge only on the final payment page. It is considering showing the full price before customers choose their tickets. The amount received from each completed sale would be unchanged, but research suggests that fewer customers would complete a purchase.
Which conclusion follows if the firm makes this change?
The firm can infer that its market share will fall by the same proportion as its completed sales.
The firm is pursuing sales growth because the amount received from each completed sale remains unchanged.
The firm's total revenue will be unchanged because the amount received from each completed sale stays the same.
The firm accepts lower expected total revenue in order to give customers clearer price information.
138 exam-style questions on AQA GCSE Economics 1.4 Production, costs, revenue and profit, covering 1.4.1a Business objectives, 1.4.1b Types of costs and revenue, 1.4.1c Calculating profit, 1.4.1d Profit as an incentive to produce, 1.4.1e Moral and ethical considerations, 1.4.2a Production versus productivity, 1.4.2b Factors and benefits of productivity, 1.4.3a Economies of scale and business behaviour, 1.4.3b Types of economy of scale, and 1.4.3c Diseconomies of scale. Each one has a worked solution and a mark scheme showing where the marks go.