ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What does total revenue minus total expenses indicate? “The profit or loss made by the business.”

Detailed explanation-2: -You need to determine the opportunity cost. Put simply, opportunity cost is what a business owner misses out on when selecting one option over another. It’s a way to quantify the benefits and risks of each option, leading to more profitable decision-making overall.

Detailed explanation-3: -Getting your business funded is one of the main issues that all business face and have to tackle in order to survive.

Detailed explanation-4: -Identifying a target market allows marketers to focus on those most likely to purchase the product. Limiting the population funnels research and budgets to the customers with the highest profit potential.