The factor is called a profit.
Profit is an aim to any business establishment. This is the financial return or reward that an entrepreneur ultimate goal after the risk they have take. The moment a product is sold more than it cost to produce, then a profit is earned which can be invested again.
PROFIT = TOTAL SALES - TOTAL COSTS
Suppose a $3 per-unit tax is placed on this good. the per-unit burden of the tax on sellers is $1 .
Explanation:
The demand curve and the production curve are cross-secting before the tax level reaches $4.
The supply curve moves to the left when the tax of $3 was levied, so that the new price payable by consumers is $6 where the new supply curve and the demand curve intersect, while the seller collects $3 where the original supply curve and the demand curve intersects.
hence, the per unit burden of the tax imposed on buyers is $6 - $4 = $2
while the burden on sellers is $4 - $3 = $1
Answer:
The correct option is C,royalties
Explanation:
Royalties refers to payment received by the owner of patent from the individuals making use of the patented design or product as a reward for creativity and originality.
Profits are excess of revenue over costs of doing business overall
Receipts are inflows of cash and cash equivalents to the business either form sales transactions or from sources such as disposal of assets as well as issuance of shares.
Payoffs refers to the amount paid to an employee either upon retirement or on leaving a job
