Profit — Unit test Answers

The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control?

Which best describes how consumers may benefit from specialization?

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

Price controls on goods can be set by

A reward or punishment that encourges people to behave in a certain way is called a(n)

A factor that most influences changes in consumer demand is

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

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 revenue the company makes after selling 10 boards?

To generate higher profits, producers must work to

The graph shows a demand curve.Which most likely accounts for the changes shown on the demand curve?

Which describes a way in which consumers most likely benefit from producers’ absolute advantage?

A builder must build fifty houses by the end of the year but he has run out of available land.Which best describes the builder's supply of houses?

The graph shows excess supply.Which explains why the price indicated by p2 on the graph is higher than the equilibrium price?

On a graph, an equilibrium point is where

According to the law of demand, as prices decrease, the quantity demanded

How can producers maximize their profit? Check all that apply.They can work to increase their marginal cost.They can work to decrease their marginal cost.They can raise prices to increase marginal revenue.They can lower prices to decrease marginal revenue.They can keep marginal costs below marginal revenues.They can keep marginal revenues below marginal costs.

A demand curve shows how changes in

The graph shows a demand curve.The graph shows the demand curve shifting from D (orange) to D₁ (blue), with the new curve located to the left of the original curve.Which statement best explains this change?

The law of supply states that as the price of a good rises, the quantity supplied of that good