Question

Net profit = ?

• A. TR - TC
• B. MR + MC
• C. Both (A) and (B)
• D. None of these

Hint:

Profit is simple: what you bring in (Total Revenue) minus what you spend (Total Cost).

Answer 1

The Correct Option is A

Profit is the most basic concept in business and is defined as the difference between what a firm earns (its revenue) and what it spends (its costs). The formula for net profit (often called economic profit) is: \[ \text{Profit} = \text{Total Revenue (TR)} - \text{Total Cost (TC)} \] This formula holds true for all types of firms and market structures.