A firm's revenue minus its factor payments equals

Question

Quizplus · Accepted Answer

Revenue minus factor payments leaves the residual, which is the profit or loss earned by the firm. So, Option B is the correct answer. Option A and D are incorrect because revenue minus factor payments does not equal either zero or the firm's total revenue. Option C is incorrect because quasi-rents represent the difference between a factor's earnings in its current use and its earnings in its next-best alternative use, which is not related to the question.

A Firm's Revenue Minus Its Factor Payments Equals