WAEC - Economics (2017 - No. 19)
which of the following can be added to a firm's profit to obtain total revenue
total variable cost
total fixed cost
marginal cost
total revenue
Uitleg
Total Revenue (TR) is calculated by multiplying the quantity of goods sold (Q) by the price of the goods (P).
For example, if you sold 120 pens for N2 each: To find your Profit: You will have to subtract the Total Cost (TC) from your Total Revenue(TR).
Recall that we defined a firm's short-run total costs as
Total Cost = TFC + TVC.
Now we can define economic profit as:
Profit = Total Revenue - Total Cost