revenue and profits
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Title: revenue and profits

Essay Details:

Subject: Business
Author: Kenneth R
Date: August 15, 2011
Level: University
Grade: A
Length: 3 / 630

Essay text:

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. 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...

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