Profit Answers

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21
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Producers must understand the marginal benefit of making an additional unit, which shows the

A
actual gain.
B
eventual gain.
C
possible gain.
D
unlikely gain.
22
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What is the best definition of marginal benefit?

A
the possible income from producing an additional item
B
the price of producing one additional unit of a good
C
the additional income gained from selling an additional good
D
the financial gain from business activity minus expenses
23

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

A
marginal revenue.
B
market price.
C
total revenue.
D
production cost.
24

Clark’s Cleaners is a housekeeping service. The company’s expenses include the

A
money the company earns after paying all of its production costs.
B
cleaning supplies and any equipment the company purchases.
C
total amount of money the company receives from its customers.
D
amount of money the company earns from an individual cleaning.
25

To generate higher profits, producers must work to

A
increase their total supply.
B
increase their total expenses.
C
decrease their customer base.
D
decrease their production costs.

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