T4 - Revenue Flashcards
1
Q
What is Total Revenue
A
P x Q
2
Q
What is marginal revenue
A
The increase in revenue from the sale of an extra unit good
3
Q
What is AR equal to when demand is perfectly elastic
A
Marginal revenue
4
Q
When is there profit maxamisation
A
MC = MR
5
Q
What does an MR > 0 mean
A
TR is increasing
6
Q
When is revenue maxamisation
A
At the point when MR = 0
