Profit

If the product price is $85, how many units of output must the firm produce in order to maximize profits?

• 0

• 3

• 4

• 5

• 6

A firm sells its product for $4. The profit-maximizing level of output for this firm is

• 2

• 3

• 4

• 5

• impossible to determine from the information given

The graph above shows the short-run cost and revenue curves for a perfectly competitive firm. Assume that the market price is P0 and the firm is producing at quantity Q2 . To maximize profit, the firm should

• continue to produce quantity Q2, where average total cost is at its minimum

• produce quantity Q1, where price is equal to marginal cost

• produce quantity Q0, where average variable cost is at its minimum

• decrease the price so that price equals average variable cost

• increase the market price to the level of the minimum average total cost

The profit-maximizing level of output for this firm is

• 2

• 3

• 4

• 5

• impossible to determine from the information given

Which of the following is the best definition of PROFIT?

• The total amount of income a business makes from selling products or services

• The amount of money a business has left over after paying for their costs.

• The total amount of money a business spends.

Which of the following is the equation for figuring out PROFIT?

• Profit = Revenue - Cost

• Profit = Cost - Revenue

• Revenue = Profit - Cost

• Costs = Profit - Revenue

The term used to describe money gained after a sale.

• cost price

• selling price

• profit 

• loss

What is the term used to describe the financial gain obtained when the revenue from a business activity exceeds the expenses, costs, and taxes?

• Revenue

• Profit

• Loss

• Investment

Which of the following is a primary goal for most businesses in a capitalist economy?

• Maximizing profit

• Minimizing revenue

• Increasing costs

• Reducing workforce

In a simple profit calculation, if the cost price of an item is $50 and the selling price is $70, what is the profit?

• $20

• $30

• $50

• $70