By definition, profits are
A)total output minus total inputs.
B)total revenue plus total costs.
C)total revenue minus total costs.
D)total inputs minus total output.
E)total costs minus total revenue.

Question

Quizplus · Accepted Answer

Profits are the difference between total revenue and total costs. This means that when a business earns more revenue than the costs incurred to produce it, there is a profit. Therefore, choice C, total revenue minus total costs, is the correct definition of profits.

By Definition, Profits Are