Revenue, Profits, and Price: Crash Course Economics #24

_____ profit is revenue minus explicit costs.

_____ profit is revenue minus explicit costs and implicit costs.

A _____ profit is the minimum level of economic profit a company needs to stay in business.

• normal

• excess

• baseline

• reduced

_____ costs are costs that change depending on a company's production volume.

_____ costs are basic operating expenses of a business that cannot be avoided and that do not change.

Average cost is the _____ cost divided by the number of output.

Economies of scales means that the more things you produce, the lower your average cost.

• True

• False

_____ revenue is the additional revenue earned from selling another unit.

The Law of Diminishing Marginal _____

• Returns

• Excess

• Margins

• Profit

A _____ cost is a cost that has already been paid and can't be recovered.