The difference between the total revenue and total cost curves at a given output is equal to
A) Total profit.
B) Profit per unit.
C) Average revenue.
D) Average total cost.

Question

Quizplus · Accepted Answer

The difference between the total revenue and total cost curves at a given output represents the total profit. This is because total revenue represents the amount of money earned from selling a certain quantity of goods or services, while total cost represents the total expenses incurred in producing that quantity of goods or services. Therefore, the difference between the two represents the remaining amount of money that the business earns after covering all its costs and expenses. This remaining amount is the total profit.

The Difference Between the Total Revenue and Total Cost Curves