Question

The difference between the revenue and cost is known as ...............

• A. Cost of Production
• B. Input Cost
• C. Marginal Cost
• D. Profit

Hint:

Profit = TR – TC. Positive profit → gain, negative profit → loss.

Answer 1

The Correct Option is D

Step 1: Recall formula.
Profit equals Total Revenue minus Total Cost. Step 2: Evaluate each option.
- (A) Cost of production: Expenses to produce goods, not the difference.
- (B) Input cost: Cost of resources, not the difference.
- (C) Marginal cost: Change in total cost for one additional unit, not applicable.
- (D) Profit: Correct, the remainder after costs are subtracted from revenue.
Step 3: Conclusion.
The term for the difference between revenue and cost is profit.
Final Answer: \[\boxed{\text{Profit}}\]