ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Adding fixed and variable costs
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subtracting fixed and variable costs
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subtracting total costs from total revenue
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Multiplying marginal revenue by, marginal product
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Detailed explanation-1: -Finding profit is simple using this formula: Total Revenue-Total Expenses = Profit.
Detailed explanation-2: -3) The profit a business makes is equal to the revenue it takes in minus what it spends as costs. To obtain the profit function, subtract costs from revenue.
Detailed explanation-3: -Key Takeaways. Gross profit, also called gross income, is calculated by subtracting the cost of goods sold from revenue. Generally, gross profit only includes variable costs and does not account for fixed costs.
Detailed explanation-4: -Economic profit is total revenue minus total cost, which includes both explicit and implicit costs. The difference is important. Even though a business pays income taxes based on its accounting profit, whether or not it is economically successful depends on its economic profit.