Asked by
Andrew Earle
on Nov 04, 2024
Verified
Profit is equal to
A) marginal revenue minus marginal cost.
B) total revenue divided by total cost.
C) total revenue minus total cost.
D) total revenue divided by marginal revenue.
Marginal Revenue
Marginal revenue is the additional income that is generated by selling one more unit of a good or service.
Marginal Cost
The financial outlay for manufacturing an extra unit of a product or service.
Total Revenue
The total amount of money received by a company for goods or services sold, calculated as the quantity sold multiplied by the price per unit.
- Understand the concept of economic profit and how it differs from accounting profit.
Verified Answer
SR
Learning Objectives
- Understand the concept of economic profit and how it differs from accounting profit.