To calculate profit, producers subtract their total production cost from their a. total revenue b. marginal revenue c. marginal cost d. tital uniys produced

The answer is A) total revenue.

The total revenue is how much money is generated while the total production cost is the amount it costs to produce the good or service.

The profit is how much money the producers make from the good or service, so we most subtract the costs from the revenue.

The reason marginal revenue is incorrect is that it is the addition revenue generated from producing one more unit. If we multiply the marginal revenue by the total of units produced, we will get the total revenue. If we factor out the total units produced (or q for quantity), we can define profit as:

q(P - ATC)

where P is the price of a unit and ATC is the average total cost.

What is an agreement among firms to divide the market, set prices, or limit production called? this is called collusion