Total revenue minus total cost is equal toGroup of answer choicesthe rate of return.marginal revenue.profit.net cost.
Question
Total revenue minus total cost is equal to
- the rate of return.
- marginal revenue.
- profit.
- net cost.
Solution
To determine what "total revenue minus total cost" is equal to, let's analyze the terms involved:
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Total Revenue (TR): This is the total amount of money generated from sales of goods or services. It is calculated as:
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Total Cost (TC): This includes all the costs incurred by a business in the production of goods or services. It can encompass both fixed and variable costs.
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Profit: This is a financial metric that represents what remains after all costs have been subtracted from total revenue. The formula for profit (P) is:
Based on the analysis, the answer to the question "Total revenue minus total cost is equal to" is profit.
Final Answer
Total revenue minus total cost is equal to profit.
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