Economic profit is the difference between total revenue and
Average cost
Marginal cost
Economic cost
Total cost .
It total revenue is divided by the units sold , we shall get
Total revenue
Average revenue
Marginal revenue
Total profit
If marginal revenue equals marginal costs
No profit is being made
Total revenue equals total cost
Profits are maximised
Producing another unit would increase profit
The profit per sale is a measure of
Cash flow
Profitability
Feasibility
Liquidity
If the marginal revenue is less than the marginal cost then to profit maximize a firm should
Reduce output
Increase output
Leave output where it is
Increase costs
In the short term a firm will produce provided the revenue.
Covers fixed costs
Covers variable costs
Covers total costs
Covers sales
When internal economics of scale occur
Total costs falls
Marginal costs increase
Average costs fall
Revenue fall.
_______ increases and decreases with the volume of output .
Fixed cost
Variable cost
Total cost
Money cost
_______ cannot be changed in the short period.
Production cost
If marginal product is below average product .
Fall
Rise
Constant
slowly grow
