Which of the Following Defines Total Profit

question 238

Multiple Choice

Which of the following defines total profit?

• A)average revenue minus average cost
• B)marginal cost times output
• C)marginal revenue minus marginal cost
• D)total revenue minus total cost
• E)average cost divided by output

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Definitions:

Differential Cost

A future cost that differs between any two alternatives.

Alternatives

Alternatives refer to the different options or choices available in decision-making processes.

Unit Production Costs

The total cost incurred to produce, manufacture, or acquire a unit of a product including direct materials, labor, and overhead.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain relatively constant regardless of the levels of production.