We can measure the profits earned by a firm in a competitive industry as

Question

Quizplus · Accepted Answer

Profits earned by a firm in a competitive industry can be calculated by subtracting the average total cost (ATC) from the price (P) and multiplying the difference by the quantity (Q) sold. This gives the total revenue minus the total costs incurred by the firm, resulting in the total profit. Therefore, option A, (P - ATC)x Q, is the best choice for measuring profits in a competitive industry.

We Can Measure the Profits Earned by a Firm in a Competitive