Suppose a firm's costs are F + v ∗ q² where F and v are positive real numbers and the firm sells its product at the market determined price p.Profits are calculated using

Question

Quizplus · Accepted Answer

The firm's profits can be calculated by subtracting the costs from the revenue generated by selling the product. The revenue is the product of the market determined price of the product and the quantity sold (p*q). Thus, option A is correct in presenting the revenue as p*q. 
Option B presents the formula for profits derived from the total revenue minus the total costs, which is a correct approach as well. 
Therefore, both options A and B are correct and hence, the answer is D.

Suppose a Firm's Costs Are F + V ∗ Q2

Suppose a Firm's Costs Are F + V ∗ Q²