# CTE Resource Center - Verso - Economics and Personal Finance Task 619982217

# Describe how costs and revenues affect profit and supply.

## Definition

Description should include
• definitions of revenue, cost, and profit
• an explanation of how profit or loss is calculated
• an explanation of how potential for profit affects supply.

## Mathematics

### A.4

The student will solve
1. multistep linear and quadratic equations in one variables algebraically;
2. quadratic equations in one variables algebraically;
3. literal equations for a specified variable;
4. systems of two linear equations in two variables algebraically and graphically; and
5. practical problems involving equations and systems of equations.

## Economics and Personal Finance Standards of Learning

### EPF.2

The student will demonstrate knowledge of the role of producers and consumers in a market economy by
1. describing how consumers, producers, workers, savers, investors, and citizens respond to incentives;
2. explaining how businesses respond to consumer sovereignty;
3. identifying the role of entrepreneurs;
4. comparing the costs and benefits of different forms of business organization, including sole proprietorship, partnership, corporation, franchise, and cooperative;
5. describing how costs and revenues affect profit and supply;
6. describing how increased productivity affects costs of production and standard of living;
7. examining how investment in human capital, capital goods, and technology can improve productivity;
8. describing the effects of competition on producers, sellers, and consumers;
9. explaining why monopolies or collusion among sellers reduces competition and raises prices; and
10. illustrating the circular flow of economic activity.

### EPF.4

The student will demonstrate knowledge that many factors affect income by
1. examining the market value of a worker’s skills and knowledge;
2. identifying the impact of human capital on production costs;
3. explaining the relationship between a person’s own human capital and the resulting income potential; and
4. describing how changes in supply and demand for goods and services affect income.

## FBLA Competitive Events and Activities Areas

### Entrepreneurship

The topic for this event changes from year to year. The annual topic may or may not correlate with this particular course. Please refer to the current Virginia FBLA State Handbook.