Total Revenue Minus Cost Of Revenue

The reason behind the correct option is that accountants and economists view profit for a differently.

Total revenue minus cost of revenue. For output levels less than or greater than q 0 total profit as represented by the difference between total revenue and total cost is less than the total. An entrepreneur estimates his total profit total revenue minus total cost for his proposed company as p x x3 4x2 5x 20 where p is in hundreds of dollars and x is number of years the company has been in business. Shows the relationship between the quantity of inputs used to produce a good and the quantity of output of that good. Total revenue minus total cost minus opportunity cost is correct.

In the illustration this occurs at the output level q 0. The difference is important because even though a business pays income taxes based on its accounting profit. The gross margin represents the amount of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services sold by the company. Total revenue minus the total and total costs of production is economic profit implicit explicit marginal returns are a characteristic of production whereby the marginal product of the next unit of a variable resource utilized is less than that of the previous variable resource.

The total revenue total cost perspective is based on the fact that profit equals revenue minus cost and focuses on maximizing this difference. Total revenue minus total cost. At the output level q 0 total revenue equals tr 0 total cost equals tc 0 and total profit is the difference. Economic profit is total revenue minus total cost including both explicit and implicit costs.

This can be increased by increasing the price decreasing the costs while keeping the price constant and or increasing the sales. At q 0 your total revenue equals tr 0 and your total cost equals tc 0. It means total revenue minus explicit costs the difference between dollars brought in and dollars paid out. Total revenue minus total costs including explicit and implicit costs production function.

Total revenue minus total explicit costs. Total profit equals total revenue minus total cost or.