Average Profit Calculator

Calculate Average Profit



Formula

To calculate the Average Profit (\(Pave\)):

\[ Pave = AR - AC \]

Where:

What is Average Profit?

Average profit is the difference between the average revenue and the average cost. It represents the profit earned per unit of output on average.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ Pave = 500 - 300 = 200 \text{ dollars} \]

The Average Profit is $200.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ Pave = 750 - 450 = 300 \text{ dollars} \]

The Average Profit is $300.