3.1.4.3 Revenue

    Cards (16)

    • Total revenue is calculated by multiplying the quantity sold by the price
    • Total revenue is the total income a business receives from selling its products or services
    • If total revenue is $500 from selling 100 widgets, the average revenue is $5.

      True
    • Marginal revenue helps businesses understand the impact of increasing or decreasing production
    • Relationship between revenue curves
      1️⃣ Total revenue increases as quantity sold increases
      2️⃣ Marginal revenue reflects the change in total revenue from selling one more unit
      3️⃣ Average revenue shows revenue per unit sold
    • Average revenue is calculated by dividing the total revenue by the quantity sold.
    • Average revenue is calculated as total revenue divided by the quantity sold.
    • Arrange the relationships between TR, AR, and MR:
      1️⃣ AR is derived from TR by dividing it by the quantity sold.
      2️⃣ MR measures the change in TR for a change in quantity sold.
    • How is total revenue calculated?
      Quantity sold x Price per unit
    • If a company sells 100 widgets at $5 each, the total revenue is $500.

      True
    • How is average revenue calculated?
      Total revenue / Quantity sold
    • How is marginal revenue calculated?
      Change in total revenue / Change in quantity sold
    • If selling an additional 10 units increases total revenue by $50, the marginal revenue is $5 per unit.
      True
    • What is total revenue calculated by multiplying?
      Quantity sold by price per unit
    • Marginal revenue is calculated by dividing the change in total revenue by the change in quantity sold.

      True
    • Match the revenue concept with its definition:
      Total Revenue (TR) ↔️ Total income from selling goods/services
      Average Revenue (AR) ↔️ Revenue per unit sold
      Marginal Revenue (MR) ↔️ Additional revenue from selling one more unit
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