A-level Paper 1, June 2024Markets and Business Behaviour
A-level Paper 1, June 2024, Q3(b)
If Peloton changes its objective to sales maximisation, then without making a loss, it operates at an output where:
Multiple choice1 mark
Context
Peloton is a firm which makes exercise bikes. Peloton’s objective is to prioritise selling fitness services rather than to achieve short-term profit maximisation.
Aaverage cost equals average revenue
Baverage cost is minimised
Cprice elasticity of demand is equal to -1
Dprice equals marginal cost
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