The Chart Shows The Marginal Cost Of Producing Apple Pies

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

Answer: producing the next unit.

Question: 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?

Answer: $450

Question: Producers must understand the marginal benefit of making an additional unit, which shows the

Answer: possible gain.

Question: How can producers maximize their profit? Check all that apply.

Answer: They can work to decrease their marginal cost.

They can raise prices to increase marginal revenue.

They can keep marginal costs below marginal revenues.

Question: What is the difference between profit and revenue?

Answer: NOT Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.

Question: 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.

Answer: an increase in the cost of farm equipment

a rise in demand for organic produce

an increase in customers at the market

Question: The chart shows the marginal cost of producing apple pies.According to the chart, the marginal cost of producing the second pie is

Answer: 50

Answer: $3,000

Question: South Avenue Publishing produces self-help books. The company’s profit is the

Answer: money the company earns after paying all of its production costs.

Question: The chart shows the marginal revenue of producing apple pies.According to the chart, the marginal revenue

Answer: remains the same as production increases.