The Nature And Influences on A Firms Revenue Flashcards
1
Q
MR definition
A
The extra revenue resulting from selling one more or one less unit of output
2
Q
Average revenue
A
Total revenue divided by output sold
3
Q
Revenue maximised where marginal revenue is…
A
Equal to 0
4
Q
Price taker
A
A firm that has no influence upon price
Highly competitive market
5
Q
Price maker
A
A firm that influences price when it changes in output
6
Q
The more market power a firm has…
A
The more a change in output will influence price
7
Q
Whether a change in price results in a increase in TR is….
A
Dependent upon PED
8
Q
The nature of a firms revenue
A
Deciding whether or not to sell more or less of a product firms take into account MR AND AR
