Profit is the:
A) total revenue minus total cost.
B) sum of total revenue and total cost.
C) total cost minus total revenue.
D) None of these is true.

Question

Quizplus · Accepted Answer

Profit is the difference between total revenue and total cost. Option A is the only choice that correctly states this relationship. Option B is incorrect as it would be the total revenue generated by the firm, without accounting for the cost of goods sold. Option C is incorrect as it would be a negative value, indicating a loss rather than a profit. Option D is incorrect as option A accurately defines profit.

Profit Is The