A Firm's Profit Equation Equals

Multiple Choice

A firm's profit equation equals

A) Total cost + Total revenue or [(Fixed cost + Variable cost) + (Unit price × Quantity sold) ].
B) Total revenue - Total cost or [(Unit price × Quantity sold) - (Fixed cost + Variable cost) ].
C) Total cost - Marginal cost or [(Fixed cost + Variable cost) - (Unit price × Quantity sold) ].
D) Total cost - Variable cost or [(Fixed cost + Variable cost) - (Unit price × Quantity sold) ].
E) Total revenue/Total cost or [(Unit price × Quantity sold) ÷ (Fixed cost + Variable cost) ].