1. When is a business making a profit?
- When revenues are higher than costs.
- When revenues equal costs.
- When revenues are less than costs.
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Other questions in this quiz
2. A firm sells 10 units at £5 each. Its total costs are £30. How much profit is made?
- A £20 loss is made.
- A £20 profit is made.
- A £50 profit is made.
3. If a company reduces a product's price, what does this mean for their revenue?
- There could be an increase or decrease in revenue.
- There will be a decrease in revenue.
- There will be an increase in revenue
4. What does 'total cost' mean?
- The total expenses of a firm.
- The total income earned by a firm.
- The total amount of profit earned by a firm.
5. An increase in output does not mean an increase in:
- Variable costs.
- Direct costs.