Skip to main content

Concepts of Revenue|What is Revenue ?|How many types of Revenue ?|What is total Revenue ?|What is marginal revenue ?

 What is Revenue ?

The total amount recieved by a firm from the sale of an item is called revenue.

How many types of Revenue ?

 There are three types of Revenue ?

i) Total Revenue

ii) Marginal Revenue

iii) Average Revenue

               What is total Revenue ?

The revenue that a firm gets by selling a given output is called total revenue.

  TR =P×Q

           What is marginal revenue ?

Marginal revenue is the change in total revenue when one more unit of a commodity is sold.


              What is average yield?

Average receipts refer to revenue per unit of output.


               AR,MR legend TR price stable




                   graphical presentation



• TR is increasing at the same rate. Hence TR is represented by an upward moving straight line.

• Both AR and MR are shown as horizontal straight lines as price is constant. When AR is constant then MR is also constant and AR=PR

      AR,MR legend TR price is not stable



                 graphical presentation



• TR curve is reading decreasing rate till point B. This is because MR is falling.

• TR is maximum at point B. Because MR = 0

• TR starts falling at point B. This is because MR is negative.


Labels:

Popular posts from this blog

Forms of Market|what is Market ?|Features of Monopolistic competition|monopolistic competition

 Forms of Market|what is Market ?|Features of Monopolistic competition                      What is Market ? It is arrangement that facilitates the sale and purchase of goods and services by bringing buyers and sellers in contact with each other. Forms of Market  i) full competition ii) Monopoly iii) monopolistic competition  iv) Minorities                         full competition perfect competition is a form of market in which a large number of buyers and sellers buy and sell identical goods at prices set by the industry.               Full Competition features   i) Large number of sellers of firms: The number of sellers selling a commodity is so large that a decrease in the supply by any on firm has very little effect on the total market supply. ii) More number of buyers: Not only the number of seller...
Click me»

माँग का सिद्धांत| Theory of demand|what is individual demand and Market demand

 माँग का सिद्धांत| Theory of demand               माँग से क्या अभिप्राय है ? माँग से अभिप्राय एक वस्तु की उन विभिन्न संभव मात्राओं से है जो कोई उपभोक्ता उस वस्तु की विभिन्न संभव कीमतों पर खरीदने के लिए तैयार है।          माँगी गई मात्रा से क्या अभिप्राय है? माँगी गई मात्रा से अभिप्राय उस विशेष मात्रा से हैं जो वस्तु की एक विशिष्ट कीमत पर खरीदी जाती है।                      माँग अनुसूची से क्या अभिप्राय है ? माँग अनुसूची वह तालिका है जो किसी वस्तु की विभिन्न कीमतों पर खरीदी गई उस वस्तु की विभिन्न मात्रा को प्रकट करती है।          माँग अनुसूची कितने प्रकार की होती ? i) व्यक्तिगत माँग अनुसूची ii) बाजार माँग अनुसूची                    व्यक्तिगत माँग अनुसूची व्यक्तिगत माँग अनुसूची से अभिप्राय बाजार में एक व्यक्तिगत उपभोक्ता की माँग अनुसूची से है ।           ...
Click me»

Concepts of Cost|What is meant by cost?|What is meant by explicit cost ?|What are the types of total cost ?|What is meant by average cost ?

Concepts of Cost|What is meant by cost?|What is meant by explicit cost ?|What are the types of total cost ?|What is meant by average cost ?              What is meant by cost ? cost is the total expenditure incurred in a producing a commodity.                  Type of cost i) Explicit Cost ii) implicit cost iii) Opportunity cost iv) Total cost V) Average cost vi) Marginal Cost            What is meant by explicit cost ? Explicit cost means that which is incurred on the resources that a firm acquires from outside.           What is meant by implicit cost ? Implicit cost means that all inputs are not bought in the market.  The producer also uses proprietary habits in the production process.  this is called implicit cost       What is meant by opportunity cost ? The opportunity cost of producing a good is the quantity of ...
Click me»