If a business produces and sells only one unit of a good, what would its profit be?
A) the price received for the good
B) the price of the product minus the cost of the resources used to produce the product
C) the return paid to the firm's bank on its outstanding loans
D) the price of the product minus the wages paid for the labour used to produce it

Question

If a business produces and sells only one unit of a good, what would its profit be?  
A) the price received for the good 
B) the price of the product minus the cost of the resources used to produce the product 
C) the return paid to the firm's bank on its outstanding loans 
D) the price of the product minus the wages paid for the labour used to produce it

Quizplus · Accepted Answer

Profit is calculated as the difference between the price of the product and the cost of resources used to produce the product. Therefore, in this case, the profit would be the price of the good minus the cost of the resources used to produce it.

If a Business Produces and Sells Only One Unit of a Good