Profit

Question 1

To generate higher profits, producers must work to

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decrease their production costs.

Question 2

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

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actual gain.

Question 3

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

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marginal revenue.

Question 4

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 5

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

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cleaning supplies and any equipment the company purchases.

Question 6

What is the difference between profit and revenue?

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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

What is the difference between marginal cost and marginal revenue?

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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 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?

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$3,000

Question 9

What is the best definition of marginal cost?

Revolt · Accepted Answer

the price of producing one additional unit of a good

Profit Answers

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