Calculating Profit

By Jodi Beggs, About.com Guide

Once revenues and the costs of production are defined, calculating profit is pretty straightforward.

Simply put, profit is equal to total revenue minus total cost. Since total revenue and total cost are written as functions of quantity, profit is also typically written as a function of quantity. In addition, profit is generally represented by the Greek letter pi, as indicated above.

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• Calculating Profit
• Economic Profit versus Accounting Profit
• A Profit Example
• A Profit Example
• Economic Profit Is Useful in Decision Making

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