Suppose a handbag maker currently sells 500 handbags per week and makes a profit of $7,000 per week. The plant owner observes, "Although the last 75 handbags we produced and sold increased our revenue by $1,000 and our costs by $1,300, we are still making an overall profit of $7,000 per week so I think we're on the right track. We are producing the optimal number of handbags." Using marginal analysis terminology, another economic term for the additional revenue received from the sale of the last 75 handbags is Group of answer choices gross profit gross earnings sales revenue marginal revenue gross revenue
Suppose a handbag maker currently sells 500 handbags per week and makes a profit of $7,000 per week. The plant owner observes, "Although the last 75 handbags we produced and sold increased our revenue by $1,000 and our costs by $1,300, we are still making an overall profit of $7,000 per week so I think we're on the right track. We are producing the optimal number of handbags." Using marginal analysis terminology, another economic term for the additional revenue received from the sale of the last 75 handbags is Group of answer choices gross profit gross earnings sales revenue marginal revenue gross revenue
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose a handbag maker currently sells
500 handbags per week and makes a profit
of $7,000 per week. The plant owner
observes, "Although the last 75 handbags
we produced and sold increased our
revenue by $1,000 and our costs by $1,300,
we are still making an overall profit of
$7,000 per week so I think we're on the
right track. We are producing the optimal
number of handbags."
Using marginal analysis terminology,
another economic term for the additional
revenue received from the sale of the last
75 handbags is
Group of answer choices
gross profit
gross earnings
sales revenue
marginal revenue
gross revenue
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