Which of the following could be used to calculate the profit for a firm?
A)Profit = MR - MC
B)Profit = MR - TC
C)Profit = (P - MC) × Q
D)Profit = (P - ATC) × Q

Question

Quizplus · Accepted Answer

Profit is calculated as the difference between total revenue (P x Q) and total cost. Option D, Profit = (P - ATC) x Q, represents this calculation, as it subtracts average total cost from price and multiplies the result by quantity sold. Options A and B are incorrect because they only consider marginal cost, not total cost. Option C is incorrect because it uses marginal cost instead of average total cost.

Which of the Following Could Be Used to Calculate the Profit