MCQ Questions
Q.1.
How can producers maximize their profit? Check all that apply.
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    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.
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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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    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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    the price of producing one additional unit of a good
Q.2.
Producers often work to maximize their ____ and make them as large as possible.
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    profits
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    $3,000
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    cleaning supplies and any equipment the company purchases.
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    remains the same as production increases.
Q.3.
The chart shows the marginal revenue of producing apple pies.According to the chart, the marginal revenue
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    profits
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    the price of producing one additional unit of a good
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    remains the same as production increases.
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    cleaning supplies and any equipment the company purchases.
Q.4.
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?
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    $450
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    profits
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    remains the same as production increases.
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    $3,000
Q.5.
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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    the price of producing one additional unit of a good
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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.
  • 0%
    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.
Q.6.
What is the best definition of marginal cost?
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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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    the price of producing one additional unit of a good
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    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.
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    cleaning supplies and any equipment the company purchases.
Q.7.
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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    profits
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    remains the same as production increases.
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    cleaning supplies and any equipment the company purchases.