Answer:
The revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production cost.
Step-by-step explanation:
To answer the question, let us picture that you have a business, and you sell bread.
If you sell bread for $5 per loaf, and you sell 2 loaves, your revenue will be 2 * 5 = $10.
Let's say that in order to bake the bread, you have to rent your neighbor's oven for $0.25 per hour, the flour costs $1 per loaf, and the yeast costs $1 (these are all made-up numbers). If each loaf takes one hour to bake, two loaves will cost 0.5 + 2 + 2 = $4.50 to make. Your profit will then be your revenue minus your cost, or 10 - 4.5 = $5.50.
From this scenario, we can see that the revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production cost.
Hope this helps!
