2.4 Profit

Question 1

What is the difference between profit and revenue?

Revolt · Accepted Answer

Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.

Question 2

Clark’s Cleaners is a housekeeping service. The company’s expenses include the

Revolt · Accepted Answer

cleaning supplies and any equipment the company purchases.

Question 3

What is the best definition of marginal revenue?

Revolt · Accepted Answer

the additional income gained from selling an additional good

Question 4

[BLANK]

Revolt · Accepted Answer

profits

Question 5

Brenda’s Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board, $1 for the paint, and $10 for the labor. What is the total profit the company earns after selling 100 boards?

Revolt · Accepted Answer

$3,000

Question 6

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of

Revolt · Accepted Answer

producing the next unit.

Question 7

Brenda’s Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board, $1 for the paint, and $10 for the labor. What is the total revenue the company makes after selling 10 boards?

Question 8

Brenda’s Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board, $1 for the paint, and $10 for the labor. What is the total revenue the company makes after selling 10 boards?

Revolt · Accepted Answer

$450

Question 9

The Davis family grows organic vegetables to sell at a local farmer’s market. Which are factors that directly affect their profit? Check all that apply.an increase in the cost of farm equipmenta rise in demand for organic producean increase in customers at the marketa change in the market price for non-organic fruita sale on organic meats at the market

Revolt · Accepted Answer

an increase in the cost of farm equipment; a rise in demand for organic produce; an increase in customers at the market

Question 10

What is the best definition of marginal benefit?

Revolt · Accepted Answer

the possible income from producing an additional item

2.4 Profit Answers

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