Study Notes
Business Revenues
- Level:
- A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 16 Feb 2019
Business revenue is the income from selling goods and services in markets
Revision Video: Maximising Total Revenue
Summary of key definitions
- Average revenue: Price per unit = TR/Q
- Marginal revenue: Change in total revenue from selling the extra unit
- Price elastic demand: When coefficient of PED > 1
- Price elasticity of demand: % change in demand for X divided by % change in price of X
- Price inelastic demand: When coefficient of PED < 1
- Price maker: A firm with pricing power because AR curve is downward sloping
- Price taker: Associated with perfect competition, where AR=MR
- Total revenue: TR = Average revenue x output
- Unitary elasticity: When the coefficient of PED = 1
You might also like
Explaining Business Objectives
Study Notes
Behavioural Theories of the Firm
Study Notes
Profit Satisficing and Profitability Factors
30th January 2014
Explaining the Principal Agent Problem
Study Notes
Business Costs & Revenues Revision Quiz
Quizzes & Activities
Business Growth & Objectives Revision Quiz
Quizzes & Activities
Satisficing behaviour by businesses
Study Notes