What does 'total cost' mean?

• The total income earned by a firm

• The total expenses of a firm

• The total amount of profit earned by a firm

What does the amount of revenue a business earns each month depend on?

• Selling price

• Quantity sold

• Both selling price and quantity sold

What is revenue sometimes called?

• Turnover

• Overheads

• Price

An increase in output does NOT mean an increase in:

• variable costs

• overheads

• direct costs

A firm sells 10 units at £5 each. Its total costs are £30. How much profit is made?

• A £50 profit is made

• A £20 profit is made

• A £20 loss is made

How do you calculate profit?

• Subtracting total costs from total revenue

• Subtracting total revenue from total costs

• Multiplying the quantity sold by price

How do you calculate total revenue?

• Quantity sold x average price

• Quantity sold x average cost

• Quantity sold x average profit

When is a business making a loss?

• When revenues are higher than costs

• When revenues equal costs

• When revenues are less than costs

When is a business making a profit?

• When revenues are higher than costs

• When revenues equal costs

• When revenues are less than costs

If a company reduces a product's price, what does this mean for their revenue?

• There will be an increase in revenue

• There could be an increase or decrease in revenue

• There will be a decrease in revenue