micro 7 definitions Flashcards
1
Q
what is normal profit?
A
the profit needed to keep a firm operating in the industry
2
Q
what is supernormal/abnormal profit?
A
profits additional to those needed to keep a firm operating
3
Q
what is total revenue?
A
the total sales revenue a firm will receive over a given period of time
4
Q
what is average revenue?
A
the revenue gained per unit sold?
5
Q
what is marginal revenue?
A
the amount that one more unit sold will increase or decrease revenue by
