Micro

Production & Costs

Easy

The difference between firms total revenue and total cost is called?

Output

Production

Input

Profit

✅ Correct Option: 4

Profit is defined as the excess of a firm's total revenue over its total cost: $\pi = TR - TC$ . Output and input refer to physical quantities, and production is the process of transforming inputs into output, so Profit is the correct term.

2025: 28 May Shift 2

The firm must employ more of the variable inputs, in order to increase the production of output. Therefore, as output increases

2026: 23 May Shift 1

The average fixed cost (AFC) decreases as output (q) increases. If we multiply any value q of output with its corresponding AFC, we always get a constant, namely ___________.

2025: 29 May Shift 1

How does an increase in price affect supply?

2025: 28 May Shift 2

In the short run, some of the factors of production of a firm ......

2025: 15 May Shift 1

Consider a production function $q = f (x_1, x_2)$ where the firm produces q amount of output using $x_1$ amount of factor 1 and $x_2$ amount of factor 2. Now suppose the firm decides to increase the employment level of both the factors t (t > 1) times.

Identify the correct statement from the following.

2025: 14 May Shift 1

Match List-I with List-II

List–I	List–II
(A) Total variable cost	(I) TR – (TVC + TFC)
(B) Total Revenue	(II) TVCₙ – TVCₙ₋₁
(C) Profit	(III) Average variable cost × Quantity
(D) Marginal cost	(IV) Price × Quantity

Choose the correct answer from the options given below:

The difference between firms total revenue and total cost is called?

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)