We can measure the profits earned by a firm in a competitive industry as
A)(P - ATC) × Q.
B)(P - MC) × Q.
C)MR × MC.
D)(MC - ATC) × Q.

Name: We can measure the profits earned by a firm in a competitive industry as A)(P - ATC) × Q. B)(P - MC) × Q. C)MR × MC. D)(MC - ATC) × Q.
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Question

Quizplus · Accepted Answer

In a competitive industry, profits are calculated as total revenue minus total costs, which can be expressed as (Price - Average Total Cost) multiplied by Quantity.

We Can Measure the Profits Earned by a Firm in a Competitive