Managerial Economicsbasic
Profit is the difference between revenue from output sales and the _____ of inputs.
Answer
cost
Explanation
### Why this is right
Profit is calculated as revenue from sales minus the cost of inputs. If costs exceed revenue, the firm records a loss rather than a profit.
### The concept
The manager chooses what and how much to produce and bears the resulting financial outcome. Production decisions therefore need to consider both output revenue and the resources required to make that output.
### Remember
Profit compares sales revenue with input costs.
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