A-LevelEconomicsTheory of the FirmOct/Nov 2018Paper 3 Q81 Mark
A firm abandons its policy of horizontal expansion and switches to a policy of backward vertical growth. What does this suggest is most likely about the firm's objectives? A It now prefers revenue maximisation to cost minimisation. B It now prefers sales maximisation to profit satisficing. C It now prefers security of sales to profit maximisation. D It now prefers security of supplies to growth of market share.
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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