Profits for a firm are computed as follows: Profits = TR - FC.

Name: Profits for a firm are computed as follows: Profits = TR - FC.
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Question

Quizplus · Accepted Answer

The correct formula for computing profits is: Profits = Total Revenue (TR) - Total Cost (TC), where TC includes both fixed costs (FC) and variable costs (VC). The formula given in the question is incorrect as it only takes into account fixed costs and one specific variable cost (F1S1) rather than all variable costs.

Profits for a Firm Are Computed as Follows: Profits =