Font size
WorksheetsProfit in a Market Economy
Total questions: 20
Worksheet time: 25mins
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.
In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of
purchasing a unit.
distributing that unit.
producing the next unit.
producing a different unit.
Producers must understand the marginal benefit of making an additional unit, which shows the
actual gain.
eventual gain.
possible gain.
unlikely gain.
The chart shows the marginal revenue of producing apple pies. According to the chart, the marginal revenue
decreases by ten dollars as production increases.
increases by ten dollars as production increases.
falls to zero dollars as production increases.
remains the same as production increases.
To generate higher profits, producers must work to
increase their total supply.
increase their total expenses.
decrease their customer base.
decrease their production costs.
The point of maximum profit is the point at which the marginal cost equals the
marginal revenue.
market price.
total revenue.
production cost.
The Davis family grows organic vegetables to sell at a local farmer’s market. Which are factors that directly affect their profit? Check all that apply.
an increase in the cost of farm equipment
a rise in demand for organic produce
an increase in customers at the market
a change in the market price for non-organic fruit
a sale on organic meats at the market
How can producers maximize their profit? Check all that apply.
They can work to increase their marginal cost.
They can work to decrease their marginal cost.
They can raise prices to increase marginal revenue.
The can lower prices to decrease marginal revenue.
They can keep marginal costs below marginal revenues.
o calculate profit, producers subtract their total production cost from their
Total Revenue
Marginal Revenue
Marginal Cost
Total Units Produced
Producers often work to maximize their___________ and make them as large as possible.
debts
ptofit
expenses
cost
The chart shows the marginal cost of producing apple pies. According to the chart, the marginal cost of producing the second pie is
1.00
0.50
0.25
1.25
