Flashcards in Total Revenue 8.2-1 Deck (12)

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1

## What is total revenue?

### The price of a good or service multiplied by the quantity sold.

2

## Curve of a Total Revenue graph:

### Is not curved. It is called a 'smooth' curve.

3

## Total Revenue Curve shows you:

### That for any given quantity of the product sold in a period, how much total revenue the firm earns.

4

## Slope of the TR curve:

### Rise over the run. Slope of TR = the priceT of the product.

5

## What is the TR formula?

### PxQ = TR

6

## Consider a total revenue table for a firm that makes tv sets:

### If price is $500 and they sell 1 tv, $500 x 1 = $500. Therefore, TR = $500.

7

## Total Revenue slope:

### Is equal to the price of the product for a perfectly competitive firm.

8

## If you plot each revenue quantity combination:

### You can get a Total Revenue Curve.

9

## When you have a collection of points:

### You should connect them so they can form a curve.

10

## What would it mean to talk about selling one and a half tv sets a week?

### It would really just mean that you are selling 3 tv sets every 2 weeks.

11

## Does it make sense to think about the possibility of fractional tv sets sold?

### Yes. Refer to the above Q&A.

12