Answer
The profits earned by a firm can be determined by subtracting its total costs from its total revenue.
Work Step by Step
The formula showing this relationship is:
Total Revenue (TR) - Total Costs (TC) = Profit
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 13 - Part V - The Costs of Production - Questions for Review - Page 275: 1
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