Total profit can be calculated as:
A) Average total cost multiplied by price.
B) Total revenue divided by the quantity sold.
C) The difference between price and average total cost multiplied by the quantity sold.
D) Price and average total cost added together and then multiplied by the quantity sold.

Question

Quizplus · Accepted Answer

Total profit is calculated by finding the difference between the price at which goods are sold and the average total cost to produce those goods, then multiplying that difference by the quantity of goods sold. This captures the per-unit profit and scales it by the total number of units sold to find overall profit.

Total Profit Can Be Calculated As