Profit (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the formula for calculating total profit?
What is the formula for calculating total profit?
What term do economists use when a firm's total costs exceed its total revenue?
What term do economists use when a firm's total costs exceed its total revenue?
Negative profit
What is normal profit?
What is normal profit?
Minimum profit level to remain in business
How do economists treat normal profit in cost analysis?
How do economists treat normal profit in cost analysis?
As an opportunity cost
What is abnormal profit?
What is abnormal profit?
Profit earned over and above normal profit
What does abnormal profit signal in a market with no entry barriers?
What does abnormal profit signal in a market with no entry barriers?
Industry is profitable, attracting new firms
Using the table: TR rises from £68k to £80k as output goes from 4 to 5. What is marginal revenue?
Using the table: TR rises from £68k to £80k as output goes from 4 to 5. What is marginal revenue?
£12,000
At what condition does a firm make normal profit?
At what condition does a firm make normal profit?
When total revenue equals total cost
What is the most important source of finance for firms undertaking investment projects?
What is the most important source of finance for firms undertaking investment projects?
Retained profits
How does profit incentivise innovation in a market economy?
How does profit incentivise innovation in a market economy?
High future profits reward risk-taking