profit and revenue
To calculate profit, producers subtract their total production cost from their
total revenue
How can producers maximize their profit? Check all that apply.
2,3,5
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?
450
Profit equals the total amount of money made minus
EXPENSES
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.
Clark's Cleaners is a housekeeping service. The company's expenses include theQ
cleaning supplies and any equipment the company purchases.
To generate higher profit margins, producers must work to
decrease their production costs
The point of maximum profit is the point at which the marginal cost equals the
marginal revenue
South Avenue Publishing produces self-help books. The company's profit is the
money the company ears after paying all of its production costs
Producers must understand the marginal benefit of making an additional unit, which shows the
possible gain
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
According to the chart, the marginal revenue
remains the same as production increases
What is the best definition of marginal cost?
the price of producing one additional unit of good