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pychu [463]
3 years ago
13

How does a firm calculate its profit? total revenue minus marginal revenue variable cost plus total cost total revenue minus tot

al cost marginal revenue minus marginal cost
Physics
2 answers:
Marysya12 [62]3 years ago
7 0

Answer:

The correct option is 3. A firm calculate its profit as " Total profit = Total revenue - Total cost".

Explanation:

Profit of a firm is financial gain. It is the difference between the total amount earned by the firm and the total amount spent in buying, operating, or producing something.

It other words, profit is the difference between total revenue and total cost.

A firm calculate its profit as

Total profit = Total revenue - Total cost

Where, total revenue is the sum of fixed and marginal revenue, total cost is the sum of fixed cost and marginal cost.

A firm calculate its profit as " Total profit = Total revenue - Total cost". Therefore the correct option is 3.

Svetach [21]3 years ago
4 0

The correct answer is total revenue minus total cost.

When a firm is calculating the profit they need to find the difference between how much money they earned and how much they spent. The difference between their total revenue and their total cost is their profit.

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