1.6.1 Revenue & Costs Flashcards
1
Q
How is total revenue (TR) calculated
A
Price x quantity sold
2
Q
How is average revenue (AR) calculated
A
Total revenue/ quantity sold
3
Q
What is marginal revenue
A
The extra revenue earned from the sale of one extra unit
4
Q
What are fixed costs
A
Costs which do not vary with output
E.g. rents, advertising
5
Q
What are variable costs
A
Change with output; they are direct costs
6
Q
Calculate total costs
A
Total variable costs + total fixed costs
7
Q
How is average costs calculated
A
Total costs / quantity produced
8
Q
What is marginal cost
A
The cost of producing one extra unit
9
Q
How is percentage change calculated
A
New value - original value / original value x 100
