What is typically measured to assess the success of profit maximization?

• A. Brand recognition
• B. Market share
• C. The gap between total revenue and total cost
• D. Customer loyalty

Answer: (C)

The measurement of the gap between total revenue and total cost is a direct and fundamental way to assess the success of profit maximization. Profit is defined as the difference between the total revenue generated from sales and the total costs incurred in producing those goods or services. When a business aims for profit maximization, it seeks to increase this gap as much as possible. A larger gap indicates higher profitability, which is the primary goal of many enterprises.

Other indicators such as brand recognition, market share, and customer loyalty are important for the broader health of the business, influencing its ability to generate revenue or control costs over time. However, they do not directly quantify profit. For instance, while a high market share can suggest strong sales performance, it does not account for whether those sales are profitable after costs are deducted. Similarly, customer loyalty is a valuable asset that can help ensure steady sales, but it does not automatically equate to financial success without considering costs and revenue.