Which of the following defines total profit?

Question

Quizplus · Accepted Answer

Total profit is the difference between total revenue and total cost. Option D represents this concept as it subtracts the total cost from total revenue to get the profit. Option A is incorrect as it calculates average profit instead of total profit. Option B calculates only the additional cost of producing one more unit of output. Option C calculates the difference between revenue from selling an extra unit and the additional cost of producing that extra unit, but it does not give the total profit. Option E divides the average cost by output, which is not related to total profit.

Which of the Following Defines Total Profit