Question

Which situation would be represented by zero?

O a $3 loss and a $4 profit
O a $3 loss
O a $4 loss and a $4 profit
O a $4 profit

Answer 1

The correct answer is option 4. In the given options, the situation represented by zero profit is 'a $4 profit'. Zero profit occurs when the revenue earned by a business is equal to the cost incurred.

Step-by-step explanation:

In the given options, the situation represented by zero profit is 'a $4 profit'. Zero profit occurs when the revenue earned by a business is equal to the cost incurred.

In this case, a $4 profit indicates that the revenue generated is exactly equal to the cost incurred. Therefore, the business is not making any additional profit.

This can be represented by the equation:

Revenue - Cost = Profit

$4 - $0 = $4

Since the profit is not negative and not greater than zero, it is equal to zero.