All of the following can be used to compute average profit except
A)marginal profit minus marginal cost.
B)total profit divided by quantity.
C)average revenue minus average total cost
D)price minus average total cost.

Question

Quizplus · Accepted Answer

Option A gives the calculation for the marginal profit, which is the profit earned from selling one additional unit. It does not provide information about the overall profitability of the business. B, C, and D are all methods to calculate average profit. Option B finds the average profit per unit sold by dividing the total profit earned by the quantity of units sold. Option C finds the average of the difference between revenue and total costs for each unit sold. Option D calculates the profit earned per unit sold by subtracting the total cost per unit from the price charged for the unit.

All of the Following Can Be Used to Compute Average