Total revenue-total expenses.

Total revenue-total expenses.

• A. Profit
• B. Competition
• C. Price Competition
• D. Free Enterprise Economy

Answer: (A)

Profit is the amount left after subtracting all costs from the money earned from selling goods or services. When you take total revenue and subtract total expenses, the result is profit. If revenue is higher than expenses, you’ve made a profit; if expenses exceed revenue, you incur a loss. The other options describe market ideas or economic systems, not the result of revenue minus expenses. For example, if revenue is 1,000 and expenses are 800, profit is 200.

Profit is the amount left after subtracting all costs from the money earned from selling goods or services. When you take total revenue and subtract total expenses, the result is profit. If revenue is higher than expenses, you’ve made a profit; if expenses exceed revenue, you incur a loss. The other options describe market ideas or economic systems, not the result of revenue minus expenses. For example, if revenue is 1,000 and expenses are 800, profit is 200.