Revenue, Profits, and Price: Crash Course Economics #24

(a)   profit is revenue minus explicit costs.

(a)   profit is revenue minus explicit costs and implicit costs.

A _____ profit is the minimum level of economic profit a company needs to stay in business.

• normal

• excess

• baseline

• reduced

(a)   costs are costs that change depending on a company's production volume.

(a)   costs are basic operating expenses of a business that cannot be avoided and that do not change.

Average cost is the (a)   cost divided by the number of output.

Economies of scales means that the more things you produce, the lower your average cost.

• True

• False

(a)   revenue is the additional revenue earned from selling another unit.

The Law of Diminishing Marginal _____

• Returns

• Excess

• Margins

• Profit

A (a)   cost is a cost that has already been paid and can't be recovered.