By Definition, Profits Are

question 59

Multiple Choice

By definition, profits are

• A)total output minus total inputs.
• B)total revenue plus total costs.
• C)total revenue minus total costs.
• D)total inputs minus total output.
• E)total costs minus total revenue.

---

Definitions:

Purely Competitive Firm

A firm that operates in a perfectly competitive market, where there are many buyers and sellers, the product is homogeneous, and there is free entry and exit in the market.

Output Level

The total quantity of goods or services produced by a firm or industry at a given time.

Monopolistic Competition

A market configuration where numerous companies offer products that are alike but not the same, resulting in competitiveness centered on aspects other than price.

Pure Competition

A market structure characterized by an extremely large number of sellers, none of which can influence market price or terms for exchange.