Business objectives

Q2 Name the goal of a sole supplier that prices where average revenue just covers average cost.

Q1 Identify the condition an imperfectly competitive sunglasses maker such as Luxottica must meet to maximise profit.

Q3(a) Sketch a cost and revenue diagram contrasting profit maximisation with revenue maximisation, given Peloton's focus on fitness services ahead of near-term profit.

Q3(b) State the output rule Peloton would follow if it switched to loss-free sales maximisation (AC = AR / lowest AC / PED = −1 / price = MC).

Q5 Identify how switching from profit maximising to revenue maximising affects supernormal profit and price.

Q10 Evaluate how separating ownership from control shapes a firm's aims, contrasting Bezos at Amazon with Royal Mail's largest shareholder.

Q10 Evaluate why smaller firms may pursue different goals from large ones, given Malaysian SMEs reluctant to expand.

Q5 Choose the likeliest outcome when a monopolist abandons profit maximisation for maximum sales volume (fewer workers / a higher price / lower total fixed costs / higher output).

Q8 Do state-owned enterprises and private firms always pursue different goals? Evaluate with diagrams, comparing Norway's subsidised universities with fee-charging profit-maximising US ones.

Q6 Deduce which objective a monopolist pursues when it chooses price P3 on the diagram shown.

Q6(c) Assess, using Extract A, whether coffee shop owners really pursue profit maximisation as their main objective.

Q10 Assess, with diagrams, whether firms invariably put revenue maximisation first, given meat processor JBS saw Chinese sales revenue climb 60% in Q4 2020.

Q4(c) Revenue maximisation requires which of these conditions to hold? (AR = AC / AR = MC / MR = AR / MR = 0)

Q8 Picking one industry, evaluate why growth is the chief aim of so many firms (context: Visinema of Indonesia buying animation studios abroad); diagrams required.

Q1 Mara Group aims to maximise sales volume of a new smartphone without making a loss. Identify the necessary condition. (MR = MC / AR = AC / MR = 0 / AR = MR)

Q10 Evaluate how far a firm's choice of objective shapes its profits, given Garuda Indonesia's November 2017 statement that revenue maximisation came first; a diagram is needed.

Q4(b) Say what changes for the nail salon when the owner's goal moves from maximising revenue to maximising sales.

Q8 Judge whether firms in an industry of your choosing treat revenue maximisation as a more realistic goal than profit maximisation.