: Pearson Edexcel past-paper questions pack
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Business growth and business objectives

Past-paper questions pack

Name
Class
Date set
Date due
Score/ 170

Questions are numbered; the mark schemes (the answer key) follow on separate pages so the question pages can be handed out alone. www.economicsaleveltutor.com

Pearson Edexcel AS and A-level Economics past-paper questions since 2016 · 22 parts · mark schemes follow the questions · www.economicsaleveltutor.com · Questions and mark schemes © Pearson Edexcel

1. June 2025 · Paper 1 · Q1(a) · 4 marks · AO1=2,AO2=2
(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. (4)
2. June 2025 · Paper 1 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6
(e) Discuss the likely benefits of mergers for firms such as Microsoft. (15)
3. June 2024 · Paper 1 · Q3(a) · 4 marks · AO1=2,AO2=2
(a) Draw a cost and revenue diagram to illustrate the different business objectives: profit maximisation and revenue maximisation. (4)
4. June 2024 · Paper 1 · Q3(b) · 1 marks ·
(b) If Peloton changes its objective to sales maximisation, then without making a loss, it operates at an output where: (1) A average cost equals average revenue B average cost is minimised C price elasticity of demand is equal to -1 D price equals marginal cost
5. June 2024 · Paper 3 · Q1(c) · 12 marks · AO1=2,AO2=2,AO3=4,AO4=4
(c) With reference to Figure 2 and Extract B, discuss the possible constraints on business growth for firms supplying energy to households in the UK. (12)
6. June 2023 · Paper 3 · Q2(b) · 8 marks · AO1=2,AO2=2,AO3=2,AO4=2
(b) Examine two reasons why retailers on the high street tend to remain small. (8)
7. June 2022 · Paper 1 · Q5(a) · 1 marks · AO1=1
(a) Which one of the following best describes the merger of the makers of Fiat cars and Vauxhall cars? (1) A Backward vertical integration B Forward vertical integration C Horizontal integration D Organic growth
8. June 2022 · Paper 1 · Q6(c) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4
(c) 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. (10)
9. June 2022 · Paper 3 · Q1(c) · 12 marks · AO1=2,AO2=2,AO3=4,AO4=4
(c) With reference to Extract C, discuss the likely effects of increasing integration within the food delivery market. (12)
10. November 2021 · Paper 1 · Q4(c) · 1 marks · AO3=1
(c) Which one of the following conditions is necessary for revenue maximisation to occur? (1) A Average revenue equals average cost B Average revenue equals marginal cost C Marginal revenue equals average revenue D Marginal revenue equals zero
11. November 2021 · Paper 1 · Q6(c) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4
(c) With reference to Extract C, assess whether Thomas Cook’s failure was caused by the principal-agent problem. (10)
12. October 2020 · Paper 1 · Q5(a) · 2 marks · AO1=1,AO3=1
(a) Explain one likely reason why this business has remained small. (2)
13. October 2020 · Paper 1 · Q5(b) · 2 marks · AO1=2
(b) Explain why the previous expansion of this business could be described as ‘organic growth’. (2)
14. October 2020 · Paper 1 · Q5(c) · 1 marks · AO2=1
(c) Assume ‘Bettys’ merges with a major tea leaf supplier. Which one of the following is most likely to be an advantage as a result of this merger? (1) A External economies of scale will increase efficiency B Greater control to lower prices of tea C Industrial diversification increases risks D Lower monopoly power in the café market
15. June 2019 · Paper 1 · Q4(a) · 1 marks · AO3=1
(a) The most likely reason for this demerger was to: (1) A benefit from external economies of scale B benefit from internal economies of scale C focus more on its core business D increase its market share
16. June 2019 · Paper 1 · Q6(b) · 8 marks · AO1=2,AO2=2,AO3=2,AO4=2
(b) With reference to Extract B, examine the likely benefits to consumers of the integration between BT and EE. (8)
17. June 2019 · Paper 3 · Q2(b) · 8 marks · AO1=2,AO2=2,AO3=2,AO4=2
(b) Examine two reasons, apart from access to finance, why 90% of the manufacturing sector in Mozambique ‘is made up of small enterprises’ (Extract E, line 9). (8)
18. June 2018 · Paper 1 · Q4(a) · 4 marks · AO1=2,AO2=2
(a) Calculate the change in total supernormal profit if Emily changes her objective from profit maximisation to revenue maximisation. You are advised to show your working. (4)
19. June 2018 · Paper 1 · Q4(b) · 1 marks ·
(b) Emily now decides to change her objective from revenue maximisation to sales maximisation. This change will lead to: (1) A a decrease in the number of customers B a decrease in the price of treatments C an increase in productive efficiency D an increase in the level of profit
20. June 2018 · Paper 3 · Q1(d) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9
(d) Evaluate the microeconomic and macroeconomic factors that may influence Starbucks’ decision whether to expand in a particular country. (25)
21. June 2017 · Paper 1 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6
(e) Discuss the likely problems for Sainsbury’s and Morrisons if the suggested merger between them goes ahead. Refer to Figure 1, Extract C and your own knowledge in your answer. (15)
22. June 2017 · Paper 1 · Q8 · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9
8 ‘Revenue maximisation is a more realistic business objective than profit maximisation for many businesses.’ To what extent do you agree with this statement? Refer to an industry of your choice in your answer.

Mark schemes

1. June 2025 · Paper 1 · Q1(a)
Mark scheme June 2025 Paper 1 Q1(a)
2. June 2025 · Paper 1 · Q6(e)
Mark scheme June 2025 Paper 1 Q6(e)
3. June 2024 · Paper 1 · Q3(a)
Mark scheme June 2024 Paper 1 Q3(a)
4. June 2024 · Paper 1 · Q3(b)
Mark scheme June 2024 Paper 1 Q3(b)
5. June 2024 · Paper 3 · Q1(c)
Mark scheme June 2024 Paper 3 Q1(c)
6. June 2023 · Paper 3 · Q2(b)
Mark scheme June 2023 Paper 3 Q2(b)
7. June 2022 · Paper 1 · Q5(a)
Mark scheme June 2022 Paper 1 Q5(a)
8. June 2022 · Paper 1 · Q6(c)
Mark scheme June 2022 Paper 1 Q6(c)
9. June 2022 · Paper 3 · Q1(c)
Mark scheme June 2022 Paper 3 Q1(c)
10. November 2021 · Paper 1 · Q4(c)
Mark scheme November 2021 Paper 1 Q4(c)
11. November 2021 · Paper 1 · Q6(c)
Mark scheme November 2021 Paper 1 Q6(c)
12. October 2020 · Paper 1 · Q5(a)
Mark scheme October 2020 Paper 1 Q5(a)
13. October 2020 · Paper 1 · Q5(b)
Mark scheme October 2020 Paper 1 Q5(b)
14. October 2020 · Paper 1 · Q5(c)
Mark scheme October 2020 Paper 1 Q5(c)
15. June 2019 · Paper 1 · Q4(a)
Mark scheme June 2019 Paper 1 Q4(a)
16. June 2019 · Paper 1 · Q6(b)
Mark scheme June 2019 Paper 1 Q6(b)
17. June 2019 · Paper 3 · Q2(b)
Mark scheme June 2019 Paper 3 Q2(b)
18. June 2018 · Paper 1 · Q4(a)
Mark scheme June 2018 Paper 1 Q4(a)
19. June 2018 · Paper 1 · Q4(b)
Mark scheme June 2018 Paper 1 Q4(b)
20. June 2018 · Paper 3 · Q1(d)
Mark scheme June 2018 Paper 3 Q1(d)
21. June 2017 · Paper 1 · Q6(e)
Mark scheme June 2017 Paper 1 Q6(e)
22. June 2017 · Paper 1 · Q8
Mark scheme June 2017 Paper 1 Q8