Specification point 3.3.1 · Theme 3

Revenue

Revenues, costs and profits · Business behaviour and the labour market

Revise this topic

Questions tagged to this specification point

9 questions

Essay questions

Long-form evaluation and discussion

No essay questions tagged to this point yet.

Data-response questions

Questions built around exam extracts

No data-response questions tagged to this point yet.

Short-answer questions

Focused calculations, explanations and diagrams

A-level Paper 1, June 2025, Q1(a)Short answerCalculate

4 marks

ContextThe 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.

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.

3.3.4 · Normal profits, supernormal profits and losses 3.2.1 · Business objectives 3.3.1 · Revenue 3.3.2 · Costs

Normal profits, supernormal profits and losses revision notes Business objectives revision notes Revenue revision notes Costs revision notes

Question paper Mark scheme Examiner report

A-level Paper 1, June 2024, Q3(a)Short answerDraw

4 marks

ContextPeloton is a firm which makes exercise bikes. Peloton’s objective is to prioritise selling fitness services rather than to achieve short-term profit maximisation.

Draw a cost and revenue diagram to illustrate the different business objectives: profit maximisation and revenue maximisation.

Diagram needed. Open the original question paper for the diagram

Learn this question

Open a video explanation without leaving the question.

3.2.1 · Business objectives 3.3.4 · Normal profits, supernormal profits and losses 3.3.1 · Revenue

Business objectives revision notes Normal profits, supernormal profits and losses revision notes Revenue revision notes

Question paper Mark scheme Examiner report

A-level Paper 1, November 2021, Q4(a)Short answerCalculate

2 marks

ContextPatrick Street Productions produces musicals. Its latest production is ‘It’s a Wonderful Life’ and the total cost of this production is $200 000. The ticket price is $40. The theatre has a capacity of 300 seats. The company aims for revenue maximisation. If this is achieved, revenue from ticket sales will cover 30% of total costs. Charitable donations contribute 12.5% towards total cost and a government subsidy ensures the production covers all of its costs.

Calculate the total revenue from ticket sales for ‘It’s a Wonderful Life’, assuming it is shown only five times, all at full capacity. You are advised to show your working.

Learn this question

Open a video explanation without leaving the question.

3.3.1 · Revenue

Revenue revision notes

Question paper Mark scheme Examiner report

A-level Paper 1, June 2018, Q2(a)Short answerCalculate

2 marks

ContextThe number of individual weekly ticket sales from UK National Lottery games operated by Camelot was 73 million in the financial year 2015–2016. The sale price of each lottery ticket was £2. This figure included 24 pence of tax revenue on each ticket sold.

Calculate the weekly revenue received by Camelot after paying the tax to the government. You are advised to show your working.

3.3.1 · Revenue 1.2.9 · Indirect taxes and subsidies

Revenue revision notes Indirect taxes and subsidies revision notes

Question paper Mark scheme Examiner report

A-level Paper 1, June 2018, Q3(a)Short answerCalculate

2 marks

ContextThe average fee charged by high-street estate agents to homeowners for selling property is 1.3% of the final sale price.

Assume the selling fee is 1.3%. Calculate the payment received by an estate agent on a property sold for £489 000. You are advised to show your working.

3.3.1 · Revenue

Revenue revision notes

Question paper Mark scheme Examiner report

A-level Paper 1, June 2017, Q4(a)Short answerDraw

4 marks

ContextIn 2015 JCB, the construction equipment manufacturer, experienced a 6% fall in revenue. This resulted from a reduction in sales of construction equipment to emerging markets.

Draw a cost and revenue diagram to show the likely impact of a reduction in sales of construction equipment on JCB’s profits.

Diagram needed. Open the original question paper for the diagram

Learn this question

Open a video explanation without leaving the question.

3.3.4 · Normal profits, supernormal profits and losses 3.3.1 · Revenue

Normal profits, supernormal profits and losses revision notes Revenue revision notes

Question paper Mark scheme Examiner report

Multiple-choice questions

Quick checks of economic understanding

A-level Paper 1, June 2025, Q1(b)Multiple choice

1 mark

ContextThe 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.

Refer to the previous diagram. There is a reduction in the demand for pizza. Ceteris paribus, which one of the following will happen to the restaurant’s average revenue and marginal revenue as a result of this change?

AAverage revenue and marginal revenue both fall

BAverage revenue and marginal revenue stay the same

CAverage revenue falls and marginal revenue increases

DAverage revenue increases and marginal revenue falls

Diagram needed. Open the original question paper for the diagram

3.3.1 · Revenue

Revenue revision notes

Question paper Mark scheme

A-level Paper 1, June 2022, Q1(a)Multiple choice

1 mark

ContextDisney+ is a streaming service that distributes films and television series produced by the Walt Disney Studios. Disney+ subscribers (million) November 2019 10 December 2019 26.5 February 2020 28.6 April 2020 50 …

Ceteris paribus, the most likely consequence of the above data is that Disney+ will experience an increase in its:

Afixed costs

Bincome elasticity of demand

Cprice elasticity of demand

Drevenue

Learn this question

Open a video explanation without leaving the question.

1.2.2 · Demand 3.3.1 · Revenue

Demand revision notes Revenue revision notes

Question paper Mark scheme Examiner report

1 mark

Which one of the following conditions is necessary for revenue maximisation to occur?