What is profit?

• the same as revenue

• money coming into a business when customers buy the product

• the amount of money a business makes from selling products after all the costs have been paid

• money a business spends on business activities

What is revenue?

• the same as profit

• money coming into a business when customers buy a product

• the amount of money a business makes after all the costs have been paid

• money a business spends on business activities

What are costs?

• the money coming into a business when customers buy a product

• the money a business spends on business activities

• the money business invests

Loss happens when

• the total costs equal its total revenue

• the total costs are lower than its total revenue

• the total costs are higher than its total revenue

Total costs =

• all fixed costs + all variable costs

• all fixed costs - all variable costs

• average costs / fixed costs

Costs that remain the same ....

• average

• variable

• total

• fixed

Costs that change based on how much of a product is made

• average

• total

• variable

• fixed

The cost of making one unit is called...

• average cost

• total cost

• fixed cost

• variable cost

Total fixed costs =

• sum of all variable costs

• sum of all average costs

• sum of all fixed costs

Total variable costs =

• sum of all variable costs

• sum of all fixed costs

• sum of all average costs