revenue Flashcards
1
Q
total revenue
A
-refers to the total income a business generates from selling goods or services to consumers
-can be divided into total revenue, average revenue, and marginal revenue.
2
Q
total revenue
A
-(TR) is the total value of a business’s sales
-calculated by multiplying the quantity sold by the product’s price.
3
Q
average revenue
A
The formula to determine a firm’s average revenue (AR) is AR - TR quantity sold, where all products are sold at the same market price.
4
Q
marginal revenue
A
-(MR) is the increase in total revenue resulting from selling an extra unit of a product
-calculated using the formula: new TR - previous TR MR.
