In the case of the marginal-analysis approach, profits are shown to be a result of:
A)advertising expenditure minus sales.
B)sales minus advertising expenditures.
C)gross margin minus advertising expenditures.
D)gross margin minus sales.
E)net worth minus sales.

Question

Quizplus · Accepted Answer

In marginal analysis, profits are calculated as the difference between the gross margin (revenue minus the cost of goods sold) and advertising expenditures.

In the Case of the Marginal-Analysis Approach, Profits Are Shown