Th3.3: Types of Revenue Flashcards
1
Q
What is revenue?
A
the money earned from the sale of goods and services
2
Q
Total revenue (TR)
A
the total amount of money coming into the business through the sale of goods and services quantity x price
3
Q
Average revenue (AR)
A
demand is equal to AR : total revenue
——————–
output
4
Q
Marginal revenue (MR)
A
the extra revenue that the firms earns from selling one more unit of production: total revenue from ‘N’ goods - total revenue from (N-1) goods OR
change in total revenue
———————————–
change in output
