Theme 3.3 Revenues, Costs & Profits Flashcards
1
Q
How do you calculate total revenue?
A
Quantity sold x price
2
Q
How do you calculate average revenue?
A
Total revenue / quantity sold
3
Q
How do you calculate marginal revenue?
A
Change in revenue / change in quantity sold
4
Q
How do you calculate total costs?
A
Fixed costs + variable costs
5
Q
How do you calculate total variable costs?
A
Variable costs x quantity
6
Q
How do you calculate average (total) costs?
A
Total costs / quantity
7
Q
How do you calculate average fixed costs?
A
Total fixed costs / quantity
8
Q
How do you calculate average variable costs?
A
Total variable costs / quantity
9
Q
How do you calculate marginal costs?
A
Change in cost / change in quantity
10
Q
Where does profit maximisation occur?
A
MR=MC
