ECONOMICS

Detailed explanation-1: -Profit is the firm’s total revenue minus its total cost. A firm’s cost of production includes all the opportunity costs of making its output of goods and services. A firm’s cost of production include explicit costs and implicit costs. Explicit costs involve a direct money outlay for factors of production.

Detailed explanation-2: -It refers to the total amount of money received from sale. Total cost = Fixed cost + Variable cost. Total Revenue = Price x Quantity. It increases with increase in sale.

Detailed explanation-3: -It is the total income of a business and is calculated by multiplying the quantity of goods sold by the price of the goods. For example, if Company A produces 100 widgets and sells them for $50 each, the total revenue would be 100 * $50 = $5, 000.

Detailed explanation-4: -The product of the price per unit times the number of units sold; R = P*Q. The sum of fixed cost and the product of the variable cost per unit times quantity of units produced, also called total cost; C = F + V*Q. The revenue function minus the cost function; in symbols = R-C = (P*Q)-(F + V*Q).