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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
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