The difference between the revenue and cost is known as ____.

Profit

The correct answer is Option (4) → Profit

The difference between revenue and cost is called Profit. It represents the earnings of a firm after covering all its costs of production. If revenue is greater than cost, the firm earns a positive profit; if not, it incurs a loss.

"In order to acquire inputs a firm has to pay for them. This is called the cost of production. Once output has been produced, the firm sell it in the market and earns revenue. The difference between the revenue and cost is called the firm’s profit. We assume that the objective of a firm is to earn the maximum profit that it can."