Question on: WAEC Economics - 2017
which of the following can be added to a firm's profit to obtain total revenue
A
total variable cost
B
total fixed cost
C
marginal cost
D
total revenue
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Correct Option: D
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 2$ each: To find your Profit: You will have to subtract the Total Cost (TC) from your Total Revenue(TR).
Profit Recall that we defined a firm s short-run total costs as: Total Cost = TFC + TVC. Now we can define economic profit: Profit = Total Revenue - Total Cost
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