How do you find profit or loss in microeconomics?

In microeconomics, profit is calculated by subtracting total costs from total revenue. Specifically, the formula is: Profit = Total Revenue - Total Costs. If the result is positive, the firm has made a profit; if negative, it indicates a loss. It's essential to consider both explicit costs (out-of-pocket expenses) and implicit costs (opportunity costs) to accurately assess profitability.