Concepts of Revenue

Concepts of Revenue:

The amount of money that the firm receives by the sale of its yield in the market is termed as its revenue.

Total Revenue:

Total Revenue refers to the net amount of money which a firm receives from the sale of its products.

Mathematically,

TR = PQ

Here,
TR = Total Revenue;
P = Price;
Q = Quantity sold.

Let’s assume a firm sells 1000 units of a product at the price of $ 10 each, the net revenue will be 1000 x  $ 10 = $ 10,000/-

Average Revenue:

Average revenue is revenue per unit of the commodity sold. It is computed by dividing the net revenue by the number of units sold.

AR = TR / Q 

Here,
AR = Average Revenue
TR = Total Revenue
Q = Quantity sold

Example: Average Revenue = $ 10,000/1000 = $ 100/-

Therefore average revenue means product price.

Marginal Revenue:

Marginal Revenue is the addition made up to the net revenue by selling one more unit of a commodity.

For illustration, whenever 10 units of a product are sold at the price of $ 15 and 11 units are sold at $ 14/-, the marginal revenue becomes:

MRn = TRn – TRn-1

= $ (11x 14) – $ (10x 15)
= $ 154 – 150
= $ 4

Latest technology based Economics Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Cost and Revenue help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Cost and Revenue, project ideas and tutorials. We provide email based Cost and Revenue help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Cost and Revenue. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Cost and Revenue. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.

©TutorsGlobe All rights reserved 2022-2023.