Which of the following equations calculates the profits of a firm? A. Total costsminus-Fixed costs B. Total revenuesminus-Total costs C. Total revenues + Total costs D. Total revenuesminus-Fixed costs

Question

Mathematics

Lilah

13 June, 13:15

Which of the following equations calculates the profits of a firm? A. Total costsminus-Fixed costs B. Total revenuesminus-Total costs C. Total revenues + Total costs D. Total revenuesminus-Fixed costs

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Answers (1)

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Patience Payne · Answer 1

B. Total revenues - Total costs

Step-by-step explanation:

The profits of a firm are determined as the difference between total revenue and total costs. Total costs are composed of variable and fixed costs, while total revenue is composed by the sum of all revenues from products or services that the firm may provide.

Therefore, the correct answer is B. Total revenues - Total costs