ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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total revenue
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average revenue
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marginal revenue
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profit-maximizing quantity of output
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Detailed explanation-1: -Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top line (or gross income) figure from which costs are subtracted to determine net income. Revenue is also known as sales on the income statement.
Detailed explanation-2: -Total revenue equals the market price times the quantity the firm chooses to produce and sell.
Detailed explanation-3: -As the demand curve also shows the average revenue the firm makes at each price level, the demand curve equals the firm’s average revenue. The total revenue formula equals the amount of output sold multiplied by the price. Average revenue is calculated by dividing the total revenue by the total amount of output.
Detailed explanation-4: -Total money receipts of a firm from the sale of a given output is called total revenue. TR = OUTPUT*PRICE. Marginal revenue is the change in total revenue when one more unit of a commodity is sold. MR= change in TR/change in quantity sold. Average revenue refers to revenue per unit of output.