1.6.1 revenue and costs Flashcards
(9 cards)
1
Q
How is total revenue calculated?
A
Price x Quantity Sold.
2
Q
How is average revenue calculated?
A
Total Revenue / Quantity Sold.
3
Q
What is marginal revenue?
A
The extra revenue earned from the sale of one extra unit. It is the difference between total revenue at different levels of output.
4
Q
What are fixed costs?
A
Costs which do not vary with output.
5
Q
What are variable costs?
A
They change with output.
6
Q
What is the formula for total costs?
A
Fixed Costs + Variable Costs.
7
Q
What is the formula for Average costs?
A
Total costs / Quantity Produced
8
Q
What is marginal cost?
A
The cost of producing one extra unit.
9
Q
What is the formula for percentage change?
A
(New Value - Old Value) / Old Value x 100
