Economics GCSE
Profit
What Profit means in Economics GCSE, as defined for AQA, Pearson Edexcel.
Definitions of Profit
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Reference: AQA
The financial gain made when total revenue exceeds total costs, aiming to generate the greatest possible difference between the two to reward owners and fund expansion.
The financial reward a producer receives for taking the risk of running a business, calculated by subtracting total costs from total revenue.
The surplus remaining when total costs are deducted from total revenue.
Topics that use Profit
- The importance of cost, revenue and profit for producers (AQA GCSE)
- Business costs, revenues and profit (Pearson Edexcel GCSE)
Related terms
- Fixed costs
- Total revenue
- Variable costs
- Average cost
- Average revenue
- Break-Even Point
- Cost minimisation
- Ethical and moral interests
Using Profit in the exam
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