Given that TC = TFC + TVC and TR = AR x Q, profit is equal to

  • A (AR + Q) - TFC
  • B \(\frac{\text{(TFC + TVC)}}{Q}\)
  • C (AR x Q) - TC
  • D \(\frac{\text{(TC x Q)}}{AR}\)
jamb 1995english-language

The correct answer is C. (AR x Q) - TC

Profit is calculated by subtracting total costs (TC) from total revenue (TR). Total revenue (TR) is calculated as the average revenue (AR) multiplied by the quantity (Q). 

Therefore, profit is given by \(TR - TC\) or \((AR \times Q) - TC\)

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