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To determine the profit equation for a business or investment opportunity, one must subtract the total costs from the total revenue generated. The profit equation is expressed as Profit Revenue - Costs. This equation helps in analyzing the financial performance and potential profitability of a business or investment.

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5mo ago

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How can one determine the marginal revenue equation for a given business or market?

To determine the marginal revenue equation for a business or market, you can calculate the change in total revenue when one additional unit is sold. This can be done by finding the derivative of the total revenue function with respect to the quantity sold. The marginal revenue equation helps businesses understand how their revenue changes with each additional unit sold.


What equation is used to determine total cost?

The equation used to determine total cost is as follows: Total Cost = Fixed Cost + (Average Variable Cost) x Output. The equation to find total cost of a number ("q') of units is: C(q)= 100 + 2q.


How is profit calculated?

Profit is a positive value for revenue minus costs. (A negative difference is a loss.)The easiest and most basic way is to take the total revenue of the business and minus the total cost of the business. Hence, Profit = TR - TC. From my understanding, this simple equation have different interpretations based on different subjects. The total revenue or TR, is calculated from the price of a good multiplied with the quantity of good sold. While the total cost, or TC, is the sum of fixed cost and variable cost incurred. Hence, now the equation becomes . . . Profit = P.Q - ( Fixed Cost + Variable Cost ). This equation can change further, depending on what discipline you are looking from. If you are looking from the Economics perspectives, the total cost should be included with the opportunity cost. While from the Accounting perspectives, the opportunity cost is ignored.


How can one determine the demand equation for a product or service?

To determine the demand equation for a product or service, one can analyze market research data, consider factors like price, consumer preferences, and competition, and use statistical methods to estimate the relationship between quantity demanded and these variables. This equation helps predict how changes in these factors will affect demand for the product or service.


How do you determine velocity of money?

With the equation MV=PQ V= Price x GDP divided by supply of money

Related Questions

When owners invest money in their business the effect on the accounting equation is that the investment increases what?

increase assets and increase owners equity


How can one determine the marginal revenue equation for a given business or market?

To determine the marginal revenue equation for a business or market, you can calculate the change in total revenue when one additional unit is sold. This can be done by finding the derivative of the total revenue function with respect to the quantity sold. The marginal revenue equation helps businesses understand how their revenue changes with each additional unit sold.


Determine the nature of the solution of the equation?

The answer will depend on the equation.


What does a reactant do in an equation?

The reactants in the equation determine what product you get.


What is the meaning of opportunity success rate in an office or business?

Opportunity success rate is an equation that gives a percentage that shows how successful an office or person has been as winning opportunities. This means the higher the percentage the greater the office or business has been at making sales. Â It is a useful measure to track performance over time.


What is the equation you use to determine for momentum?

The equation is force multiplied by accelaratin


How can you apply mathematical equation in business?

Profit = total revenue - total costs is the fundamental mathematical equation for business.


How would you determine the difference between a solution and an equation?

An equation can lead to a solution.


How do you determine Ea by Arrhenius equation?

yes


What is the equation to determine who wins the presidency?

electors


What are the effects on the accounting equation from the purchase of a short-term investment?

The purchase of a short-term investment typically results in an increase in assets (cash decreases, and the investment account increases). The accounting equation remains balanced as the decrease in cash is offset by the increase in the investment account, maintaining the equality of assets, liabilities, and equity.


Explain how you an determine if the number is a solution of an equation?

Substitute the number in the equation. If the resulting statement is true the number is a solution to the equation.