In a perfectly competitive market, a firm produces and sells a certain amount of goods. Among the following what reflect the firm's profit?

Total Revenue - Total Cost.

The correct answer is Option (2) → Total Revenue - Total Cost.

In any market — including perfect competition — a firm’s profit is the difference between what it earns (Total Revenue) and what it spends (Total Cost) on producing goods.

Mathematically, Profit=Total Revenue (TR)−Total Cost

• Total Revenue (TR) = Price × Quantity Sold

• Total Cost (TC) = Fixed Cost + Variable Cost