3.1 Revenue Flashcards
1
Q
What is average revenue?
A
Total Revenue/ Quantity
2
Q
What is marginal revenue?
A
Change in revenue from selling one extra unit
3
Q
What is PED when MR=0?
A
1 - unit elastic
4
Q
Price taker demand curve?
A
- Perfectly elastic
- AR = MR
5
Q
Price maker demand curve?
A
- Downward sloping
- MR always below AR
6
Q
What happens to PED along the demand curve?
A
PED becomes more inelastic along the demand curve
7
Q
Diagram representation of changing PED on AR?
A
