Principles of Economics
Principles of Economics
7th Edition
ISBN: 9781305156043
Author: N. Gregory Mankiw
Publisher: Cengage Learning US
Question
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Chapter 13, Problem 1QR
To determine

Relationship between total revenue, profit and total cost.

Expert Solution & Answer
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Explanation of Solution

In an economy, the relationship between a firms, profit, total revenue and total cost is equal to the total revenue minus total costs (Total revenueTotal cost) .

Economics Concept Introduction

Concept introduction:

Total revenue: Total revenue refers to the revenue of a firm through their total sale of the goods.

Profit: Profit refers to the remaining revenue after deducting the total cost.

Total cost: Total cost is the total expenses incurred in the process of producing goods and services.

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