WAEC Agriculture 2012 Paper

Concept:Profit arises only when the money earned from sales is more than the total money spent on production.Explanation:In a farm business, total revenue ($TR$) represents the income obtained from selling farm produce.Total cost ($TC$) represents all expenses incurred in production, such as seeds, fertilizers, labour, and equipment.The farm makes a profit only when income is greater than expenses.Mathematically, this condition is written as:$$TR > TC$$If $TR = TC$, the business only breaks even and earns no profit.If $TC > TR$, the business makes a loss.Therefore, profit is the positive difference between total revenue and total cost.When total revenue exceeds total cost, the farm business earns a profit.Answer:C. total revenue exceeds total cost