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
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
|