2- Revenue Flashcards
1
Q
Revenue definition
A
Price x quantity
2
Q
Price taker definition
A
A firm that has to offer its product at the same price as everyone else.
3
Q
Price maker definition
A
A firm that has to cut its price in order to sell more.
4
Q
Demand (in terms of revenue)
A
Average revenue
5
Q
Revenue maximisation
A
Where the firm makes as much money as it can.
6
Q
Where can revenue maximisation be found?
A
Where Marginal revenue =0
7
Q
Average revenue definition
A
The price the firm receives per unit sold.
8
Q
Marginal revenue definition
A
The revenue gained by producing one additional unit of a product.
9
Q
Marginal revenue equation
A
Change in revenue / change in quantity
