What is the BEST definition of profit? A. Profit is the possible income from producing and additional item. B. Profit is the price of producing one additional unit of a good. C. Profit is the additional income gained from selling an additional good. D. Profit is the financial gain for business activity minus expenses.
Business · Middle School · Tue Nov 03 2020
Answered on
The best definition is:
D. Profit is the financial gain for business activity minus expenses.
Explanation:
Profit is basically met by the two factors which are
-The expense met by the firm in producing the product
-The price it actually sold for in the market.
If the second factor is indeed bigger than the first, then there is profit.
Indeed, there must also be a consideration that the expenses would also include marketing, transportation and the cost for intermediaries.
It would not production cost but it would be the cost of getting the product to the consumer.