Marginal, Average And Total Revenue Flashcards
1
Q
what is the AR curve the same
A
Demand curve
2
Q
What is total revenue (TR)
A
Price per unit X Quantity
3
Q
When does maximum total revenue occur
A
Where marginal revenue is zero
4
Q
What is the PED when MR is zero
A
1
5
Q
What happens if marginal revenue is zero and prices were cut
A
Total revenue would fall, and if prices were raised total revenue would also fall
6
Q
If demand for a product is price elastic ..
A
A supplier stands to gain extra revenue if they reduce their prices
