Asked by alex

What is the difference between profit and revenue?

Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.
Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good.

All Answers 1

Answered by GPT-5 mini AI
The first option is correct.

Revenue = total amount producers receive from selling a good (price × quantity).
Profit = revenue minus production (and other) costs (i.e., what’s left after paying costs).