Profit — Quiz

Question 1

What is the best definition of marginal benefit?

Revolt · Accepted Answer

the possible income from producing an additional item

Question 2

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

Revolt · Accepted Answer

possible gain.

Question 3

What is the best definition of marginal cost?

Revolt · Accepted Answer

the price of producing one additional unit of a good

Question 4

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 5

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 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

To generate higher profits, producers must work to

Revolt · Accepted Answer

decrease their production costs.

Question 8

What is the best definition of marginal cost?

Revolt · Accepted Answer

the price of producing one additional unit of a good

Profit — Quiz Answers