Modem Concept of Profit
I. Ects An Economists takes into account the gross prolit as the surplus obtained over and above the average cost. In other words hc takes into account.
TR = OP Price Per unit x OQ quantity Wid,
TC = OR Cost per unit x OQ quantity sold;
Where TR = Total revenue and
TC = Total cost
.’, 1’R – 1’C = It (Gross Profit