Market Structures and Competition

Question 1

What is the best definition of marginal cost?

Revolt · Accepted Answer

the price of producing one additional unit of a good

Question 2

What is the best definition of marginal benefit?

Revolt · Accepted Answer

the possible income from producing an additional item

Question 3

The chart shows the marginal revenue of producing apple pies.According to the chart, the marginal revenue

Revolt · Accepted Answer

remains the same as production increases.

Question 4

Profit equals the total amount of money made minus

Revolt · Accepted Answer

expenses.

Question 5

1.00.50.251.25

Revolt · Accepted Answer

.50

Question 6

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 7

To generate higher profits, producers must work to

Revolt · Accepted Answer

decrease their production costs.

Question 8

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 9

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 10

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.

Market Structures and Competition Answers

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