ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The formula for profit is Total revenue (TR)-Total costs (TC)
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Profit for a firm is total revenue minus total cost (TC), and profit per unit is simply price minus average cost. To calculate total revenue for a monopolist, find the quantity it produces, Q*m, go up to the demand curve, and then follow it out to its price, P*m.
Detailed explanation-2: -TC is the Total Cost Curve and TR is the Total Revenue Curve. Also, P is the equilibrium point where the distance between TR and TC is maximum.
There is 1 question to complete.