Webb9 aug. 2024 · Likewise, there's a profit margin formula, which is sometimes termed a sales margin formula. The formula is the profit divided by total revenue and multiplied by 100 to express as a percentage. Simply choose the applicable profit figure to calculate as a percentage of sales. Businesses calculate profit margins because they make it easier to ... WebbSummary. As a perfectly competitive firm produces a greater quantity of output, its total revenue steadily increases at a constant rate determined by the given market price. Profits will be highest—or losses will be smallest—for a perfectly competitive firm at the quantity of output where total revenues exceed total costs by the greatest ...
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