Profit is calculated by ?
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Answer: D. Revenue – total costs
Explanation
Economic profit is determined by subtracting all associated production costs from total revenue. Total costs include both explicit outlays and implicit opportunity costs of production. Option D is correct because it accurately subtracts total costs from total revenue. Total revenue is calculated by multiplying the quantity of output sold by its price. Total costs encompass all fixed and variable expenses incurred by the business. Positive economic profit encourages new firms to enter a competitive market industry.
Business managers monitor profit margins closely to ensure long-term corporate survival. Investors evaluate net profits to determine the overall financial health of a company. Tax authorities use revenue and cost figures to calculate corporate income tax liabilities. Subtracting only fixed costs ignores critical variable expenses incurred during production. Adding fixed costs to revenue does not yield any meaningful financial profit metric. Sales volume represents revenue generation rather than a deduction from total revenue.
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Answer: C. Both of them
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Q2. Potential output can be expanded via ____ or ______?
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Answer: D. increasing the use of all inputs, technical advances
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Q3. One-third of the nation's energy requirements are met by ?
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Answer: A. forest sector
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Answer: B. sustainable development
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Q5. Profits reach their maximum when ?
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Answer: D. marginal cost equals marginal revenue
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Q6. Races represent human breeding or mating populations categorized according to ?
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