revenue and costs Flashcards
1
Q
How is total revenue calculated?
A
Price * Quantity sold
2
Q
What is the formula for average revenue?
A
Total Revenue / Quantity sold
3
Q
What is marginal revenue?
A
The extra revenue earned from sale of one extra unit. It is the difference between total revenue at different levels of output.
4
Q
What are fixed costs?
A
Costs which do not vary with output. They are indirect costs.
5
Q
What are variable costs?
A
Costs that change with output. They are direct costs.
6
Q
What is the formula for total costs?
A
Total Variable Costs + Total Fixed Costs
7
Q
What is the formula for average costs?
A
Total Costs / Quantity produced
8
Q
What is marginal costs?
A
The cost of producing one extra unit.
9
Q
What is the formula for percentage change?
A
(Final Value - Starting Value) / Starting value x100
