Profit

Question 1

What is the difference between marginal cost and marginal revenue?

Revolt · Accepted Answer

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 2

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 3

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 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

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

Revolt · Accepted Answer

marginal revenue.

Question 6

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 7

What is the best definition of marginal revenue?

Revolt · Accepted Answer

the additional income gained from selling an additional good

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 profit the company earns after selling 100 boards?

Revolt · Accepted Answer

$3,000

Question 9

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 10

To generate higher profits, producers must work to

Revolt · Accepted Answer

decrease their production costs.

Profit Answers

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