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To calculate profit, producers subtract their total production cost from their _______ A. Total revenue B. Marginal revenue C. Marginal cost D. Tital uniys produced

Donald Ward

in Business

1 answer

1 answer

James Washington on July 2, 2018

The answer is a) total income.The total revenue is how much money is generated, while the total production cost is the amount it costs to produce the good or service.The gain is the amount of money to the producers of the good or service, so make the most of subtract expenses from income.The reason that marginal revenue is incorrect is that it is the sum of the income generated from producing one more unit. If we multiply the marginal revenue by the total units produced, we will obtain the total income. If we cross the total of units produced (or q for quantity), we can define the benefits, such as:q(P - ATC), where P is the price of a unit and the ATC is the average total cost.

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