Profit



                                                                                             
Profit
Profit is the money that is left after paying all the costs from the revenue earned. Total profit can be calculated as follows.
                                   Total profit= Total Revenue - Total cost
A firm may also make a loss. A loss occurs when the total revenue is less than the total cost.

Average Profit (AP): Average profit refers to the profit earned per unit of output.
                                   Average Profit = Profit
                                                             Output

Exercise: Assume that a product is sold for $550. Fill in the following table.
Output
Total Cost
Total Revenue
Total Profit
Average Profit
Marginal profit

0
1000





1
1350





2
1560





3
1740





4
2000





5
2400





6
3000





7
3850





8
4960