Total benefits minus total cost equals: a) gross benefit b) marginal benefit c) net benefit d) incremental benefit

The correct answer is C, net benefit.

The net profit is calculated by subtracting the total cost from the total benefit. The total costs refer to the cost accrued while producing a unit of a commodity. When producing a product, a company incurs various costs that include labor, raw materials, among others. For them to make a profit, they have to sell the commodity at a higher price than the production cost. For instance, if the production cost of a unit of product is $2, the company can sell it for $3.5. The difference of $1.5 between the selling and production cost is the net benefit.