Wiki User
∙ 2010-04-26 01:41:57Profit=Total revenue - Total cost
Wiki User
∙ 2010-04-26 01:41:57Marginal revenue is the change in total revenue over the change in output or productivity.
Yes. This is because when MR is at 0, TR is at is maximum. Generally firms produce at MR=MC, therefore if MR < 0, then MC > MR and firms will not produce at the this point. And so when MR = 0, this will be the total level of revenue achieved, and so total revenue remains unchanged
(Projected revenue) - (Extended Cost) (Projected revenue) - (Extended Cost)
Annual revenue.
The average revenue from the sale of a particular output is the value of the total sales of that output, divided by the number of units sold.
I'm thinking that marginal revenue product is the marginal revenue on one product, and marginal revenue is the marginal revenue on the whole firm sales... I'm wondering the same thing but the above response is incorrect. both terms imply values on one item as indicated by the "marginal"
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
Marginal revenue is the change in total revenue over the change in output or productivity.
Firms in most cases opt to select prices in the elastic regions of their demand curve. This fact explains why marginal revenue curve is always below.
A company maximizes profits when marginal revenue equals marginal costs.
Explain why the marginal revenue(MR) is always less than the average revenue (AR)?
Marginal Cost = Marginal Revenue, or the derivative of the Total Revenue, which is price x quantity.
what is average revenue?
A monopolist will set production at a level where marginal cost is equal to marginal revenue.
Because in Pure Competition, Demand equals Price, and Price equals Marginal Revenue;hence, Demand equals Marginal revenue.
Average Revenue: Total revenue divided by the number of units sold. Marginal Revenue: Is the extra revenue that an additional unit of product will bring. It is the additional income from selling one more unit of a good; sometimes equal to price. It can also be described as the change in total revenue ÷ the change in the number of units sold. Relationship: They both are the revenue brought in by, in this case, units sold. They are both used to calculate the total revenue just that marginal is any exrta revenue that the average revenue has left over.
Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.