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Essay

revenue and profits

Essay specific features

 

Issue:

Business

 

Written by:

Leesa D

 

Date added:

November 17, 2013

 

Level:

University

 

Grade:

B

 

No of pages / words:

3 / 630

 

Was viewed:

382 times

 

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Essay content:

The equation is as follows: TR = P * Q The second concept is average revenue (AR), this means the amount the firm earns per unit sold.1 The equation is as follows: AR = TR/Q The third concept is marginal revenue (MR), this means the extra total revenue gained by selling one more unit. 1 The equation is as follows: MR = ATR/AQ Calculating revenue curves also depends on whether or not price is affecting the firms output...
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For example, a business with a relatively small market share can only produce as much as it is capable at the set price. These businesses are therefore known as price takers. Price takers AR is indicated by the equilibrium price and also lies on the same line as the demand curve. In regards to MR curve, "it will be the same as the average revenue curve, since selling one more unit at a constant price merely adds that amount to the total revenue"...
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