Economics: Cost, Revenue and Profit

Which is the odd one out?

• Revenue

• Turnover

• Income

• Profit

Electricity, Materials used in production, Transporting goods to customers, are all types of :-

• Fixed costs

• Variable costs

• Stock items

• Tangible products

The _____________ cost is the total cost divided by the number of items produced. Which word is missing?

Market Share is the amount of profit a company makes compared to its competitors.

• True

• False

• Not sure

Profit Maximisation, Sales Growth and increasing Market Share are all examples of what?

• Business objectives

• Economies of scale

• Variable costs

• Fixed costs

Increasing Market Share might be achieved by (chose all that apply) ........

• Reducing prices

• Increasing availability/distribution of a product or service

• Investing more in advertising

• A company reducing its sales team

Rent, Rates, Salaries, Plant and Machinery, should be considered as what .......

• Variable costs

• Total costs

• Fixed costs

• Average costs

How confident are you that you understand the differences between types of costs that a business has?

• 100%

• 75%

• 50%

• 10%

A product sells for £10, it's variable costs are £ 3.50. Which of the following statements is correct?

• This is a total profit of £ 6.50

• This is margin of £ 6.50

• This is a margin of 65%

• This is a £ 6.50 contribution to fixed costs.