Question

What is the definition of profit?

a) Total revenue minus total costs
b) Money generated by high-profile college teams
c) Money left over after coaches' and players' salaries are paid
d) Revenue minus expenses after taxes

Answer 1

Profit is the money earned by a business after deducting all costs. It is calculated using the formula: Profit = Total Revenue - Total Cost.

Step-by-step explanation:

Profit is defined as the money earned by a business after deducting all costs. The formula to calculate profit is: Profit = Total Revenue - Total Cost.

Total revenue is the income generated by selling products or services, which is calculated by multiplying the price of the product by the quantity sold. Total cost includes both explicit costs (expenses directly incurred by the business) and implicit costs (opportunity costs).

For a business to be economically successful, it should aim to maximize its profit.