Profit (AQA A-Level Economics): Flashcards

Revenue minus costs

Total revenue - total costs

A loss (when costs exceed revenue)

Minimum profit needed to remain in business

Profit earned above normal profit

Total revenue equals total cost ($TR = TC$)

Where total profit ($TR - TC$) is greatest

Change in total revenue from one additional unit sold

Attracts new firms to enter the market

Profits kept in business; key source of investment finance