3.3.1 Revenue Flashcards
1
Q
Total revenue (TR)
A
Total Revenue is the total amount of money a firm earns from selling a certain quantity of goods or services at a given price.
-> TR = Price (P) x Quantity (Q)
2
Q
Average Revenue (AR)
A
Average Revenue, also known as the price per unit, is the revenue generated by each individual unit sold.
-> AR = Total revenue (TR) / Quantity (Q)
3
Q
Marginal Revenue (MR)
A
Marginal Revenue is the additional revenue generated by selling one more unit of a product.
-> MR = Change in Total Revenue (TR) / Change in Quantity (Q)
4
Q
A
5
Q
A
