Profit example #60142

27 January 2023
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Producers must understand the marginal benefit of making an additional unit, which shows the
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possible gain.
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In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of
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producing the next unit.
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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.
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-an increase in the cost of farm equipment -a rise in demand for organic produce -an increase in customers at the market
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The chart shows the marginal revenue of producing apple pies. According to the chart, the marginal revenue
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remains the same as production increases.
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To generate higher profit margins, producers must work to
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decrease their production costs.
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What is the difference between profit and revenue?
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Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.
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What is the best definition of marginal benefit?
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the possible income from producing an additional item
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How can producers maximize their profit? Check all that apply.
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-They can work to decrease their marginal cost. -They can raise prices to increase marginal revenue. -They can keep marginal costs below marginal revenues.
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Profit equals the total amount of money made minus
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expenses.
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South Avenue Publishing produces self-help books. The company's profit is the
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money the company earns after paying all of its production costs.