Economics: Profit

Profit equals the total amount of money made minus

• expenses.

• prices.

• revenue.

• supply.

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?

• $300

• $350

• $400

• $450

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

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

• money the company earns after paying all of its production costs.

• cleaning supplies and any equipment the company purchases.

• total amount of money the company receives from its customers.

• amount of money the company earns from an individual cleaning.

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

• money the company earns after paying all of its production costs.

• paper, binding, and other supplies the company purchases.

• total amount the company receives from the sale of its books.

• amount of money the company earns from selling a single book.

What is the difference between profit and revenue?

• Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.

• Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.

• Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.

• Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good.

What is the best definition of marginal benefit?

• the possible income from producing an additional item

• the price of producing one additional unit of a good

• the additional income gained from selling an additional good

• the financial gain from business activity minus expenses

What is the best definition of marginal revenue?

• the possible income from producing an additional item

• the price of producing one additional unit of a good

• the additional income gained from selling an additional good

• the financial gain from business activity minus expenses

What is the best definition of marginal cost?

• the possible income from producing an additional item

• the price of producing one additional unit of a good

• the additional income gained from selling an additional good

• the financial gain from business activity minus expenses

What is the difference between marginal cost and marginal revenue?

• 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.

• 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.

• 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.

• 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.