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AP Microeconomics
Unit 1 – Basic Economic Concepts
Topic 1.5
A company is considering introducing a new product to the market. The estimated revenue from selling the product is $50,000, while the production costs amount to $30,000. What can be concluded about the potential profitability of the new product?
The new product is likely to be profitable because the revenue exceeds the production costs.
The new product is likely to result in a loss because the production costs exceed the revenue.
Further analysis is needed to determine the profitability of the new product.
The profitability of the new product cannot be determined without additional information.
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AP Microeconomics - 1.5 Cost-Benefit Analysis
Key terms
Revenue
Production Costs
Profitability
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About Us
About Fiveable
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CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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