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Profit — Quiz Answers

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1
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What is the best definition of marginal benefit?

A
the price of producing one additional unit of a good
B
the financial gain from business activity minus expenses
C
the additional income gained from selling an additional good
D
the possible income from producing an additional item
2
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Producers must understand the marginal benefit of making an additional unit, which shows the

A
actual gain.
B
unlikely gain.
C
possible gain.
D
eventual gain.
3

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

A
amount of money the company earns from selling a single book.
B
paper, binding, and other supplies the company purchases.
C
total amount the company receives from the sale of its books.
D
money the company earns after paying all of its production costs.
4

To generate higher profits, producers must work to

A
increase their total expenses.
B
decrease their production costs.
C
increase their total supply.
D
decrease their customer base.
5

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
producing the next unit.
C
distributing that unit.
D
producing a different unit.
6

What is the difference between profit and revenue?

A
Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.
B
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good.
C
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.
D
Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.
7

What is the difference between marginal cost and marginal revenue?

A
Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.
B
Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit.
C
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.
D
Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good.
8

What is the best definition of marginal cost?

A
the additional income gained from selling an additional good
B
the possible income from producing an additional item
C
the financial gain from business activity minus expenses
D
the price of producing one additional unit of a good
9

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

A
amount of money the company earns from an individual cleaning.
B
money the company earns after paying all of its production costs.
C
cleaning supplies and any equipment the company purchases.
D
total amount of money the company receives from its customers.
10

What is the best definition of marginal revenue?

A
the additional income gained from selling an additional good
B
the possible income from producing an additional item
C
the price of producing one additional unit of a good
D
the financial gain from business activity minus expenses
11

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

A
producing a different unit.
B
producing the next unit.
C
distributing that unit.
D
purchasing a unit.
12

What is the best definition of marginal revenue?

A
the additional income gained from selling an additional good
B
the financial gain from business activity minus expenses
C
the price of producing one additional unit of a good
D
the possible income from producing an additional item
13

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

A
amount of money the company earns from selling a single book.
B
total amount the company receives from the sale of its books.
C
paper, binding, and other supplies the company purchases.
D
money the company earns after paying all of its production costs.
14

What is the difference between profit and revenue?

A
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.
B
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good.
C
Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.
D
Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.
15

What is the difference between marginal cost and marginal revenue?

A
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.
B
Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good.
C
Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.
D
Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit.
16

What is the best definition of marginal benefit?

A
the possible income from producing an additional item
B
the additional income gained from selling an additional good
C
the price of producing one additional unit of a good
D
the financial gain from business activity minus expenses
17

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

A
cleaning supplies and any equipment the company purchases.
B
amount of money the company earns from an individual cleaning.
C
money the company earns after paying all of its production costs.
D
total amount of money the company receives from its customers.
18

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

A
paper, binding, and other supplies the company purchases.
B
money the company earns after paying all of its production costs.
C
total amount the company receives from the sale of its books.
D
amount of money the company earns from selling a single book.
19

What is the best definition of marginal revenue?

A
the additional income gained from selling an additional good
B
the price of producing one additional unit of a good
C
the possible income from producing an additional item
D
the financial gain from business activity minus expenses
20

What is the difference between marginal cost and marginal revenue?

A
Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit.
B
Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good.
C
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.
D
Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.

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