Profit - Quiz Quiz

Question 1

What is the best definition of marginal benefit?

Revolt · Accepted Answer

C: the additional income gained from selling an additional good

Question 2

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

B: producing the next unit.

Question 3

What is the best definition of marginal revenue?

Revolt · Accepted Answer

A: the additional income gained from selling an additional good

Question 4

Producers must understand the marginal benefit of making an additional unit, which shows the

Revolt · Accepted Answer

A: actual gain.

Question 5

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

Revolt · Accepted Answer

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

Question 6

What is the difference between profit and revenue?

Revolt · Accepted Answer

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

Question 7

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

Revolt · Accepted Answer

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

Question 8

What is the difference between marginal cost and marginal revenue?

Revolt · Accepted Answer

A: Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good.

Question 9

What is the best definition of marginal benefit?

Revolt · Accepted Answer

A: the possible income from producing an additional item

Question 10

To generate higher profits, producers must work to

Revolt · Accepted Answer

B: decrease their production costs.

Profit - Quiz Quiz Answers

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