Letters are used to represent the terms used to answer this​ question: price​(P​), quantity of output(Q​),total cost(TC​) and average total cost(ATC​). Which of the following equations is equal to a​ firm's average​ profit?   A. ​(P −ATC​) × Q   B. P−ATC   C. ​(P×Q​)−TC   D. P−TC

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.