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