Answers2102320-Economics HONORS - Edgenuity TeacherProfit

Market Structures and Competition Answers

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What is the best definition of marginal cost?

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
2
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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
3

The chart shows the marginal revenue of producing apple pies.According to the chart, the marginal revenue

Question illustration
A
decreases by ten dollars as production increases.
B
increases by ten dollars as production increases.
C
falls to zero dollars as production increases.
D
remains the same as production increases.
4

Profit equals the total amount of money made minus

A
expenses.
B
prices.
C
revenue.
D
supply.
5

1.00.50.251.25

A
1.00
B
.50
C
.25
D
1.25
6

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?

$
$300
$
$350
$
$3,000
$
$3,500
7

To generate higher profits, producers must work to

i
increase their total supply.
i
increase their total expenses.
d
decrease their customer base.
d
decrease their production costs.
8

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

m
money the company earns after paying all of its production costs.
c
cleaning supplies and any equipment the company purchases.
t
total amount of money the company receives from its customers.
a
amount of money the company earns from an individual cleaning.
9

What is the difference between profit and revenue?

R
Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.
R
Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.
R
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.
R
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good.
10

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

A
purchasing a unit.
B
distributing that unit.
C
producing the next unit.
D
producing a different unit.
11

[BLANK]

A
total revenue
B
marginal revenue
C
marginal cost
D
total units produced
12

[BLANK]

A
debts
B
profits
C
expenses
D
costs
13

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
They can work to increase their marginal cost.
B
They can work to decrease their marginal cost.
C
They can raise prices to increase marginal revenue.
D
They can lower prices to decrease marginal revenue.
E
They can keep marginal costs below marginal revenues.
F
They can keep marginal revenues below marginal costs.
14

South Avenue Publishing produces self-help books. The company’s profit is the

A
money the company earns after paying all of its production costs.
B
paper, binding, and other supplies the company purchases.
C
total amount the company receives from the sale of its books.
D
amount of money the company earns from selling a single book.
15

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?

A
$300
B
$350
C
$400
D
$450

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