A-level Paper 1, June 2025Markets and Business Behaviour
A-level Paper 1, June 2025, Q1(a)
Calculate the change in total supernormal profit if the restaurant changes its objective from revenue maximisation to profit maximisation. You are advised to show your working.
Short answerCalculate4 marks
Context
The diagram shows the cost and revenue curves for a pizza in a popular high street restaurant. The restaurant currently pursues an objective of revenue maximisation.