3.3 Revenues, costs and profits 0.0 / 5 ? EconomicsThe company, revenue and costsA2/A-levelEdexcel Created by: Noor AbbasCreated on: 06-05-19 20:18 3.3.1 What is total revenue? Total amount of money coming into the business through the sale of goods and services. Quantity of goods sold x price 1 of 6 3.3.1 What is average revenue? Total revenue/output 2 of 6 3.3.1 What is marginal revenue? The extra revenue that the firm earns from selling one more unit of production. Change in total revenue/change in output. 3 of 6 3.3.1 What is the relationship of PED and revenue? A perfectly elastic demand curve=MR=AR. Most goods have a downward sloping demand curve so MR and AR(demand curve) are downwards. 4 of 6 3.3.2 What is total cost? The cost of producing a given level of output: fixed + variable costs 5 of 6 3.3.2 What are total fixed costs? Costs that do not change with output and remain constant e.g. rent, machinery 6 of 6
AQA Unit 3 Economics: Business Economics and the Distribution of Income 5.0 / 5 based on 1 rating Teacher recommended
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