Profit equals the total amount of money made minus

the production cost.

the opportunity cost.

the revenue earned.

the price established.

The correct answer is the production cost. Profit measures how much money stays in our poclet after the selling of our products/services, so to speak. Hence we need to have our income and subtract from it the production cost. The opportunity cost is another term; it refers to the chances we miss while we pursue a project. For example, if we make lamps but we choose not to make bikes in the same time, making bikes is the opportunity cost for making lamps. Opportunity cost does not have to be measured in money. The revenue earned is pretty much the money that is made, so it does not make sense to subtract these two. Finally, the price is irrelevant since the income also depends on how many products you sell.

The answer is A) production cost.