In class, we noted that in order to set price for our product, it would be helpful to understand the Profit Equation. What IS that equation?
a.
Profit = Average Revenue - Total Cost
b.
Profit = Marginal Revenue - Total Cost
c.
Profit = Total Revenue - Total Cost
d.
Profit = Unit Price - Fixed Costs
e.
Profit = Quantity Sold - Variable Cost
Answer: Profit = Total Revenue - Total Cost