3.2.2 Revenues

    Cards (52)

    • What is total revenue defined as?
      Money from selling products
    • Total revenue is calculated using the formula: Price × Quantity
    • Average revenue is calculated by dividing total revenue by quantity sold.
      True
    • What two variables are multiplied to calculate total revenue?
      Price and quantity
    • The law of demand states that there is an inverse relationship between price and quantity demanded.

      True
    • What does the law of demand describe?
      Inverse price-quantity relationship
    • What is average revenue defined as?
      Total revenue per unit
    • The formula for total revenue is: Total Revenue = Price × Quantity
    • Average revenue is the total revenue divided by the number of units sold.

      True
    • If selling one more unit increases total revenue by $8, the marginal revenue is $8.

      True
    • Total revenue is calculated by multiplying the price per unit by the quantity of units sold.

      True
    • The law of demand states that as price increases, quantity demanded decreases.

      True
    • Higher income can shift the demand curve to the right.

      True
    • If a company sells 50 units at $10 each, the total revenue is $500.

      True
    • If selling one more unit increases total revenue by $8, the marginal revenue is $8.

      True
    • If total revenue is $5,000 and 200 units are sold, the average revenue is $25.
      True
    • If total revenue increases from $1,000 to $1,008 when production increases by one unit, the marginal revenue is $8.

      True
    • A rational business produces where marginal revenue equals marginal cost.

      True
    • The law of demand states that as the price of a good increases, the quantity demanded decreases.
      True
    • If a company sells 50 units at $10 each, the total revenue is $500.

      True
    • There is an inverse relationship between price and quantity demanded.
      True
    • As price increases, quantity demanded decreases
    • If a company sells 50 units at $10 each, the total revenue is $500.
      True
    • Marginal revenue is calculated by dividing the change in total revenue by the change in quantity
    • If a company sells 200 units and generates total revenue of $5,000, the average revenue is $25 per unit.
      True
    • The average revenue curve matches the shape of the demand curve.
    • The law of demand states that as the price of a good increases, the quantity demanded also increases.
      False
    • How does marginal revenue differ from average revenue?
      Additional revenue per unit
    • Marginal revenue is calculated by dividing the change in total revenue by the change in quantity
    • Match the revenue concept with its definition:
      Total Revenue ↔️ Money from selling products
      Average Revenue ↔️ Revenue per unit
      Marginal Revenue ↔️ Additional revenue per unit
    • Arrange the factors that can shift the demand curve in economics:
      1️⃣ Income
      2️⃣ Prices of related goods
      3️⃣ Consumer tastes and preferences
    • Total revenue is calculated by multiplying the price per unit by the quantity
    • The law of demand explains why demand increases as prices fall.

      True
    • What is marginal revenue the result of selling?
      One more unit
    • Marginal revenue is calculated as the change in total revenue divided by the change in quantity
    • Match the concept with its definition:
      Average Revenue (AR) ↔️ Total revenue per unit
      Marginal Revenue (MR) ↔️ Additional revenue from one more unit
    • The formula for total revenue is Price x Quantity
    • The relationship between price and quantity demanded is an inverse relationship.
    • The formula for total revenue is Total Revenue = Price x Quantity
    • Average revenue is calculated as Total Revenue divided by Quantity