3.3.1- Revenue Flashcards
1
Q
What is total revenue?
A
The total amount of money coming into the business through the sale of goods and services
2
Q
What is average revenue?
A
Total revenue/ output
3
Q
What is marginal revenue?
A
The extra revenue that the firm ears from selling one more unit of production
4
Q
What is the question for marginal revenue?
A
Change in total revenue/ change in output
5
Q
What happens when demand is perfectly elastic?
A
MR=AR
