9
QuizMultiple Choice

Market Structures and Competition

Question 9 • 2102320-Economics HONORS - Edgenuity Teacher

What is the difference between profit and revenue?

Answer
R
Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.
R
Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.
R
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.
R
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good.

Explanation

Revenue is the total money a producer receives from selling a good. Profit is what remains after subtracting the costs of producing it: profit = revenue − production costs. Therefore, choice A correctly distinguishes revenue from profit.

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