Question

If you want to track the change in profits (π), you want ∆π to represent the __________.

A) Total Revenue
B) Marginal Cost
C) Change in Quantity Demanded
D) Change in Profit

Answer 1

The symbol Δπ represents the Change in Profit, indicating how much profits have increased or decreased over time.

Step-by-step explanation:

If you want to track the change in profits (π), you want Δπ to represent the Change in Profit. This is because Δ (delta) is a symbol used to denote change in any variable, so Δπ specifically means the change in the profits variable. Profits are calculated as total revenue minus total cost. Therefore, when we speak about the change in profits, we are interested in how much profits have increased or decreased over a certain period of time or due to specific business activities or market conditions. It's important to note that this is distinct from total revenue, marginal cost, or the change in quantity demanded, which are different concepts within economics and business.