Profit

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?

$3,000

What is the difference between marginal cost and marginal revenue?

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.

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.

What is the best definition of marginal cost? a)the possible income from producing an additional item b)the price of producing one additional unit of a good c)the additional income gained from selling an additional good d)the financial gain from business activity minus expenses

b)the price of producing one additional unit of a good

marginal benefit

change in benefit in response to a specific action

To generate higher profit margins, producers must work to

decrease their production costs

Profit equals the total amount of money made minus

expenses

profit

income received from an economic action, minus the costs of taking the action

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

money the company earns after paying all of its production costs

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of

producing the next unit

marginal cost

the cost associated with one additional unit of production

marginal revenue

the income received from selling one additional unit of a good or service

What is the best definition of marginal benefit?

the possible income from producing an additional item

revenue

the total income received from an economic action

maximize

to make as large as possible