Which of the following formulas defines profit?
A) (Price × Demand) - (Fixed costs) - (Variable costs × Demand)
B) Price - Demand - (Fixed costs × Variable costs)
C) Price + (Demand - Fixed costs) × Variable costs
D) Price × (Demand - Fixed costs) + Variable costs

Question

Quizplus · Accepted Answer

Profit is calculated as total revenue minus total costs. Total revenue is Price × Demand, and total costs include Fixed costs and Variable costs × Demand.

Which of the Following Formulas Defines Profit