3.3 Revenues, Costs and Profits Flashcards
1
Q
What is total revenue and how do you work it out?
A
total value off all sales
TR + P * Q
2
Q
What is average revenue and how do you work it out?
A
overall revenue per unit
AR = TR/Q = P
3
Q
What is marginal revenue and how can you work it out?
A
additional revenue a firm makes selling one extra unit
MR = change in TR/change in Q
4
Q
A
