costs and revenue
- Created by: courtroberts
- Created on: 21-03-17 10:52
View mindmap
- revenue and costs
- revenue
- TR = quantity X price
- AR = TR / output
- MR = the extra revenue received by selling one more unit
- costs
- fixed
- don't change with output
- variable
- ^ output = ^ vc
- total costs
- TVC + TFC
- average variable costs
- total variable costs / output
- average fixed costs
- total fixed costs / output
- marginal costs
- the extra cost incurred from producing 1 more unit
- fixed
- revenue
- imperfect competition
- elastic = ^ TR
- inelastic = less TR
- fall in price doesn't attract additional sales
Comments
No comments have yet been made