Revenue - Expenses $$ = $$... a) average cost. b) marginal cost. c) total cost. d) profit.

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UpStudy AI · Accepted Answer

To solve the problem, we need to identify what the equation "Revenue - Expenses" represents.

1. **Revenue** refers to the total income generated from sales.
2. **Expenses** refer to the total costs incurred in the process of generating that revenue.

The equation "Revenue - Expenses" calculates the amount of money that remains after all expenses have been deducted from the revenue. This remaining amount is commonly known as:

- **Profit**: The financial gain after all costs have been subtracted from total revenue.

Now, let's evaluate the options:

a) Average cost - This refers to the total cost divided by the number of units produced, not the difference between revenue and expenses.

b) Marginal cost - This is the cost of producing one additional unit, not the difference between revenue and expenses.

c) Total cost - This is the sum of all expenses, not the difference between revenue and expenses.

d) Profit - This is indeed the difference between revenue and expenses.

Thus, the correct answer is:

**d) profit.**
The answer is profit.

Revenue - Expenses …
a) average cost.
b) marginal cost.
c) total cost.
d) profit.

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Revenue - Expenses … a) average cost. b) marginal cost. c) total cost. d) profit.