Revenue Is Equal To Quizlet

The level of profit that occurs when total revenue is to total cost is known as normal profit equal as the market price decreases all else held constant a profit maximizing firm can its production.

Revenue is equal to quizlet. What remains after expenses and taxes are subtracted from revenue revenue is the total amount of money the business receives from its customers for its products and services. For example if company a sold one more widget and their revenue increased from 5 000 to 5 050 the marginal revenue would be equal to 50. The revenue number is the income a company generates before any expenses are taken out. The ratio of total revenue to total quantity produced b.

A purely competitive firm in the short run will maximize profit by producing up to the point where marginal revenue is equal to marginal cost if the market price is less than minimum average variable cost. Using total revenue in business. During the year the company reported total revenues of 101 000 total expenses of 80 000 and owner withdrawals of 9 000. For a business income refers to net profit i e.

Based on the information in the table the marginal revenue resulting from the last unit produced by this profit maximizing single price monopolist is equal to. For individuals however income generally refers to the total wages salaries tips rents interest or dividend received for a specific time period. The additional output produced by lowering price c. Start studying chapter 13.

At the beginning of the current year trenton company s total assets were 256 000 and its total liabilities were 179 000. The additional revenue received due to technical innovation d. The existence of switching costs in the use of computer software means that buyers of computer software are likely to change software programs than would be the case in the absence of switching costs and therefore the maker of the software program may have reason to innovate. Learn vocabulary terms and more with flashcards games and other study tools.