Calculating Revenue and Costs (CH 19) Flashcards
1
Q
Total Revenue Formula
A
Price x Quantity Sold
2
Q
Average Revenue Formula
A
Total Revenue / Quantity sold
3
Q
Marginal Revenue Formula
A
Change in Revenue / Change in Quantity
4
Q
Fixed costs Meaning and Examples
A
Cost staying the same regardless of production levels.
- Rent
- Advertising
- Salary
- Capital goods
5
Q
Variable Cost Meaning and Examples
A
Costs changing with output
- Raw materials cost
- Components
- Energy
- Wage
6
Q
What happens to VC if output level rises?
A
Variable cost rises
7
Q
Total Cost Formula
A
Fixed Cost + Variable Cost
8
Q
Average Cost Formula
A
Total Cost / Total Quantity
9
Q
Marginal Cost Meaning
A
Cost of producing extra units
10
Q
Percentage Change Formula
A
(new-original) /original x100
11
Q
Sales Volume Meaning
A
Total physical quantity of products sold
