Profit – Flashcards
Unlock all answers in this set
Unlock answersquestion
The chart shows the marginal revenue of producing apple pies.
According to the chart, the marginal revenue
answer
remains the same as production increases.
question
What is the difference between profit and revenue?
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
How can producers maximize their profit? Check all that apply.
answer
They can work to decrease their marginal cost.
They can raise prices to increase marginal revenue. They can keep marginal costs below marginal revenues.
question
What is the best definition of marginal cost?
answer
the price of producing one additional unit of a good
question
Producers often work to maximize their ____ and make them as large as possible.
answer
profits
question
In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of
answer
producing the next unit
question
Clark's Cleaners is a housekeeping service. The company's expenses include the
answer
cleaning supplies and any equipment the company purchases.
question
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?
answer
$450
question
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?
answer
$3,000
question
What is the difference between marginal cost and marginal revenue?
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.
