Question

The difference between the revenue and cost is known as ...............

• A. Cost of Production
• B. Input Cost
• C. Marginal Cost
• D. Profit

Hint:

Profit = TR – TC. Positive profit → gain, negative profit → loss.

Answer 1

The Correct Option is D

Step 1: Recall formula.
Profit = Total Revenue – Total Cost. Step 2: Evaluate each option.
- (A) Cost of production = expenses incurred to produce goods, not difference.
- (B) Input cost = cost of resources, not difference.
- (C) Marginal cost = change in total cost due to one more unit, not relevant here.
- (D) Profit = correct, the residual after subtracting costs from revenue.
Step 3: Conclusion.
The difference between revenue and cost is called profit.
Final Answer: \[ \boxed{\text{Profit}} \]