A firm's total profit can be calculated as all of the following except
A)total revenue minus total cost.
B)average profit per unit times quantity sold.
C)(price minus average total cost)times quantity sold.
D)marginal profit times quantity sold.

Question

Quizplus · Accepted Answer

Although marginal profit is an important calculation for a firm to make decisions about production and pricing, it cannot be used to calculate total profit on its own. Total profit is calculated by subtracting total cost from total revenue or by multiplying the difference between price and average total cost by the quantity sold. Therefore, option D is the incorrect choice.

A Firm's Total Profit Can Be Calculated as All of the Following