Profit Refers to

question 266

Multiple Choice

Profit refers to

• A) the point at which a company's assets equal its liabilities plus shareholder equity.
• B) the difference between the list and final price of a product or service.
• C) the money earned when the economic order quantity is minimized.
• D) the money left over after a business firm's total expenses are subtracted from its total revenues.
• E) the total amount of revenue accrued through product sales or service distribution.

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Definitions:

Production Function

A mathematical formula that describes the relationship between inputs used in production and the output of goods or services.

Returns To Scale

A concept in economics that describes the change in output as a result of a proportional change in all inputs.

Input

Resources used in the production process, including labor, materials, and capital.

Production Function

A production function describes the relationship between inputs utilized in production and the output generated from those inputs.