17 Revenue and profit Flashcards
1
Q
revenue
A
- total revenue - the money a business receives from all of its sales
- marginal revenue - extra revenue gained from selling one more unit or price of the last unit sold
2
Q
profit
A
amount of money a business gains from its sales after it has accounted for all of its costs
3
Q
loss
A
if a business has higher costs than revenue it will make a loss
4
Q
accounting profit
A
level of profit reported in business accounts. it does not take into account the opportunity cost of investment
5
Q
normal profit
A
minimum amount of profit required to convince owner to stay in market
6
Q
supernormal profit
A
profit made above normal profit
