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WAEC Economics 2005 Question 27

Question 27

Theory of Costs and Revenue

The profit of the producer can be calculated as

  1. A.total cost less total revenue
  2. B.average revenue less average cost
  3. C.total revenue less total cost
  4. D.marginal revenue less marginal cost.
Show the answer and explanation

Answer: C (total revenue less total cost)

Explanation

Profit = total revenue − total cost (AR − AC gives only profit per unit).