The Difference Between Total Revenue and Total Cost Is

question 78

Multiple Choice

The difference between total revenue and total cost is:

• A) economic profit.
• B) nominal revenue.
• C) average revenue.
• D) marginal revenue.

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Definitions:

Total Revenue

The total amount of money received by a company from sales of goods or services, before any expenses are subtracted.

Infant Industry

An industry in its early stages of development, which may be protected by the government from international competition temporarily until it becomes competitive.

Protective Tariffs

Import taxes imposed by a country on foreign goods to protect domestic industries from competition by making imported goods more expensive.

Comparative Advantage

The capacity of an entity to generate a product or service with a lesser opportunity cost compared to others.