Which Expression Calculates the Profit of a Profit-Maximizing Firm

question 151

Multiple Choice

Which expression calculates the profit of a profit-maximizing firm

• A)Profit = (Price of output - Average total cost) × Quantity of output
• B)Profit = (Price of output × Quantity of output) -Average total cost
• C)Profit = Total revenue - (Average fixed cost ÷ Quantity of output)
• D)Profit = Total revenue - (Average variable cost × Quantity of output)

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Definitions:

Plato

An ancient Greek philosopher, considered one of the pivotal figures in the development of Western philosophy, known for his works on ethics, epistemology, and metaphysics.

Aristotle

An ancient Greek philosopher and polymath whose writings covered a wide range of subjects, including physics, metaphysics, poetry, theater, music, logic, rhetoric, politics, and ethics.

Nature

All aspects of the material world around us, such as wildlife, vegetation, geographical features, and other naturally occurring elements and formations on earth, excluding humans and their inventions.

Nurture

The process by which environmental factors contribute to the growth and development of an individual.