Edexcel A · Theme 3: Business behaviour and the labour market · 3.2 Revenues, costs and profits

Edexcel A Economics past paper questions: Revenues, costs and profits

Every Edexcel A question on Revenues, costs and profits from 2017 to 2025: 2 data response questions, 11 short answer questions and 7 multiple choice questions. It covers Business growth, How markets work, Market structures and Nature of economics. Each question links to its paper, mark scheme and examiner report.

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SubtopicsBusiness growth 5How markets work 3Market structures 2Nature of economics 1

Data response questions on revenues, costs and profits

A-level Paper 1, June 2024, Q6(c)Assess10 marks

Case study: The electronics industry

Assess whether firms in the electronics industry benefit from economies of scale.

Examiner insight

What to cover
Define economies of scale as falling long run average cost as output rises. Apply technical, purchasing, marketing and risk bearing economies to large electronics firms with heavy fixed costs in plant and research.
Watch out
Confusing economies of scale with short run falling costs, or with rising profits rather than falling average cost.
Question paper p.12Mark scheme p.16Examiner report p.27Open in the toolPractise the cost curves diagram
A-level Paper 1, June 2022, Q6(c)10 marks

Case study: UK branded coffee shop chains market

Profit maximisation is assumed to be the business objective of most firms. With reference to Extract A, assess whether this is the case for coffee shop owners.

Examiner insight

What to cover
State profit maximisation at MC equals MR. Use Extract A to argue coffee shop owners may instead pursue sales revenue maximisation, market share, survival or satisficing, since many independents value lifestyle and reputation.
Watch out
Asserting the objective without using evidence from Extract A about coffee shop owners.
Question paper p.15Mark scheme p.13Examiner report p.28Open in the toolPractise the monopoly diagram

Short answer questions on revenues, costs and profits

Multiple choice questions

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

    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?

  2. A-level Paper 1, June 2025, Q3(a)

    Which one of the following applies to the dental practice’s equilibrium at point E? The dental practice is:

  3. 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:

  4. A-level Paper 1, November 2021, Q4(c)

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

  5. A-level Paper 1, November 2020, Q4(b)

    At output levels greater than Z, which one of the following correctly identifies what will happen to the cost?

  6. A-level Paper 1, June 2019, Q4(a)

    The most likely reason for this demerger was to:

  7. A-level Paper 1, June 2017, Q5(a)

    Which one of the following is a fixed cost to Starbucks?

More Edexcel A topics: Business behaviour and the labour market

Business growthMarket structuresLabour marketGovernment intervention in markets

Question text is quoted from the question papers, © Pearson Edexcel, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.