How does a business calculate total profit? total revenue minus marginal cost total revenue plus marginal cost total revenue minus total cost total revenue plus total cost

Total profit is calculated by subtracting the total cost from the total revenue. Total revenue is the total amount of money a business receives from selling its goods or services. Total cost includes all costs incurred in producing and selling those goods or services, including both fixed and variable costs. Marginal cost is the cost of producing one additional unit of a good or service, which is not directly related to the calculation of total profit. Therefore, the correct formula for calculating total profit is total revenue minus total cost.