revenue of a firm Flashcards
1
Q
what is revenue
A
the money that firms receive from selling their goods or services
2
Q
what is totalr revenue (TR)
A
it is the total amount of money recieved, in a period of time, from a firm’s sales
3
Q
Total reveue equation
A
TR = Total quantity (Q) times the price (P)
TR= Q x P
its also called the turnover
4
Q
what is…
Average Revenue (AR)
A
AR is the revenue earned per unit sold
5
Q
what is the…
Average revenue equation
A
AR = TR / Q
6
Q
What is…
Marginal Revenue (MR)
A
is the additional revenue a firm earns from selling one more unit of a product
