T4 - Costs and Revenues Flashcards
1
Q
What is total revenue
A
TR is the total amount of money recived from the sales of goods and services
2
Q
Is price constant for total revenue
A
Yes
3
Q
How to calculate total revenue
A
Price * Quantity
4
Q
What is average revenue
A
Total revenue/Quantity sold
5
Q
What is marginal revenue
A
The change in total revenue resulting from the sale in an extra unit
6
Q
How do you calculate marginal revenue
A
Change in TR/ Change in QTY
