3.3

• What is revenue?


  The money received by a business fro the sales of goods or services.
• Revenue = unit price X quantity sold
• What is average revenue?


  Revenue per unit or the demand curve.
• What is marginal revenue?

  The change in total revenue from selling one extra unit of output.
• What are price taking businesses?

  A price taker has to sell at the market price; is found in perfect competition.
• What are price making businesses?

  Price makers have the ability/power to set their own prices for the goods and services they sell; found in imperfect competition.
• What is revenue maximisation?

  An output when marginal revenue (MR) =0
• What are revenue synergies?


  The ability to sell more goods and services or raise prices after a business merger.

  E.g. - marketing and selling complementary products; cross selling into a new customer base and sharing distribution channels.
• Total revenue (TR) = price per unit X quantity.