3.2.2 Revenues

Cards (45)

The formula to calculate Total Revenue is Quantity Sold × Price per Unit
What does Average Revenue represent?
Revenue per unit sold
Average Revenue is useful for analyzing pricing strategies and profitability. 
True
The formula to calculate Marginal Revenue is Change in Total Revenue / Change in Quantity Sold
Arrange the revenue metrics from the broadest to the most specific:
1️⃣ Total Revenue
2️⃣ Average Revenue
3️⃣ Marginal Revenue
A bookstore sells 10 books for £100. Selling the 11th book raises total revenue to £110. What is the Marginal Revenue?
£10
Marginal Revenue is useful for pricing and production decisions. 
True
Marginal Revenue is useful for pricing and production decisions. 
True
Order the revenue metrics from highest to lowest total revenue based on sales
1️⃣ Total Revenue
2️⃣ Average Revenue
3️⃣ Marginal Revenue
Marginal Revenue helps understand the impact of each additional unit sold on business revenue. 
True
What is the Total Revenue if a bakery sells 500 cakes at £5 each?
£2500
Average Revenue is calculated as Total Revenue divided by Quantity
Marginal Revenue is vital for optimizing profit potential.
True
Marginal Revenue is important for businesses to optimize pricing and production decisions.
True
Match the revenue metric with its definition:
Total Revenue ↔️ Total income from sales
Average Revenue ↔️ Revenue per unit sold
Marginal Revenue ↔️ Additional revenue from selling one more unit
Average Revenue is calculated by dividing Total Revenue by Quantity Sold. 
True
If a store sells 100 items for £500, the Average Revenue per item is £5. 
True
Total Revenue is calculated by multiplying Quantity Sold by Price per Unit. 
True
Marginal Revenue measures the change in Total Revenue from selling one additional unit. 
True
Average Revenue is the revenue generated per unit sold.
True
Total Revenue is calculated as Quantity Sold multiplied by Price per Unit. 
True
Marginal Revenue is calculated as the change in Total Revenue divided by the change in Quantity Sold. 
True
What does Total Revenue refer to?
Total income from sales
Total Revenue can help cover costs and fund business growth. 
True
The formula to calculate Average Revenue is Total Revenue / Quantity Sold
What does Marginal Revenue measure?
Additional revenue from one more unit
Match the revenue metric with its definition and formula:
Total Revenue ↔️ Total income from sales ||| Total Revenue = Quantity Sold × Price per Unit
Average Revenue ↔️ Revenue per unit sold ||| Average Revenue = Total Revenue / Quantity Sold
Marginal Revenue ↔️ Additional revenue from one more unit ||| Marginal Revenue = Change in Total Revenue / Change in Quantity Sold
Total Revenue and Average Revenue are calculated using the same formula.
False
A store sells 200 T-shirts for a total revenue of £2000. The Average Revenue per T-shirt is £10
Marginal Revenue is the additional revenue generated from selling one more unit
Average Revenue is the revenue generated per unit
Match the revenue metric with its definition:
Total Revenue ↔️ Total income from sales
Average Revenue ↔️ Revenue per unit sold
Marginal Revenue ↔️ Additional revenue from one more unit
Total Revenue is the total income a business generates from selling its goods or services
Average Revenue helps businesses evaluate pricing strategies and profitability. 
True
If a bookstore sells 10 books for £100, and selling the 11th book increases total revenue to £110, what is the Marginal Revenue?
£10
Marginal Revenue is calculated as the change in total revenue divided by the change in quantity sold.
Marginal Revenue is the additional revenue generated from selling one more unit of a product or service.
The formula for Marginal Revenue is Change in Total Revenue divided by Change in Quantity Sold. 
True
Total Revenue is calculated by multiplying the quantity sold by the price per unit.
Total Revenue is the overall income from sales.