-Which of the following formulas represents total profit for a perfectly competitive firm?

Name: -Which of the following formulas represents total profit for a perfectly competitive firm?
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Question

Quizplus · Accepted Answer

Total profit for a perfectly competitive firm is calculated as total revenue minus total cost. Since total revenue is price (P) times quantity (Q) and total cost is average total cost (ATC) times quantity (Q), the formula for total profit is Q $\times$ (P - ATC).

-Which of the Following Formulas Represents Total Profit for a Perfectly