[(P - ATC) q] representsA) economic profit.B) total revenue.C) total cost.D) average fixed cost.

Question

[(P - ATC) q] representsA)  economic profit.B)  total revenue.C)  total cost.D)  average fixed cost.

tomiyah alcantar · Accepted Answer

Final Answer : A, Explanation :  The expression [(P - ATC)q] represents economic profit, where P is the price per unit, ATC is the average total cost per unit, and q is the quantity of units sold. Economic profit is calculated by subtracting the total cost from total revenue, where total cost includes both fixed and variable costs.

[(P - ATC) q] represents

A) economic profit.
B) total revenue.
C) total cost.
D) average fixed cost.

Definitions

Learning Objectives

Learning Objectives

Related questions