Which formula represents the profits for a firm? (check all that apply) (AC=average cost, MC=marginal cost, AVC=average variable cost, P=price, Q=output, TC=total cost) a. PQ-TC b. PQ-AC c. Q(P-AC) d. P(Q-AC) e. Q(P-MC) f. P(Q-AVC)

ENGR.ECONOMIC ANALYSIS
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4. Which formula represents the profits for a firm? (check all that apply)

(AC=average cost, MC=marginal cost, AVC=average variable cost, P=price, Q=output, TC=total cost)

a. PQ-TC

b. PQ-AC

c. Q(P-AC)

d. P(Q-AC)

e. Q(P-MC)

f. P(Q-AVC)

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Total cost is the overall cost incurred in the course of production of the good. 

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