Profit

Question 1

To generate higher profits, producers must work to

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decrease their production costs.

Question 2

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

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producing the next unit.

Question 3

What is the best definition of marginal cost?

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the price of producing one additional unit of a good

Question 4

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 5

What is the best definition of marginal benefit?

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the possible income from producing an additional item

Question 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 revenue the company makes after selling 10 boards?

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$450

Question 7

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

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actual gain.

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?

Revolt · Accepted Answer

$3,000

Question 9

Profit equals the total amount of money made minus

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expenses.

Profit Answers

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