Profit

Question 1

What is the best definition of marginal revenue?

Revolt · Accepted Answer

the additional income gained from selling an additional good

Question 2

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 3

What is the best definition of marginal benefit?

Revolt · Accepted Answer

the possible income from producing an additional item

Question 4

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 5

1.00.50.251.25

Revolt · Accepted Answer

.50

Question 6

To generate higher profits, producers must work to

Revolt · Accepted Answer

decrease their production costs.

Question 7

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

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producing the next unit.

Question 8

South Avenue Publishing produces self-help books. The company’s profit is the

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money the company earns after paying all of its production costs.

Question 9

[BLANK]

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profits

Question 10

The point of maximum profit is the point at which the marginal cost equals the

Revolt · Accepted Answer

marginal revenue.

Profit Answers

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