Total Revenue Function Of Quantity

And q quantity sold per period.

Total revenue function of quantity. However in most other types of market which would be generally called imperfectly competitive markets p depends inversely on q. Total revenue 20 x 400 8 000. Find the revenue function. For the ice cream bar venture the equation for this function would be ac c q 40 000 0 3 q q 0 3 40 000 q.

The total revenue to the seller of a commodity or total expenditure by the purchaser is obtained by multiplying the price by the quantity. Enjoy the videos and music you love upload original content and share it all with friends family and the world on youtube. Wikipedia total revenue wikipedia s page on total revenue and how it is used. It is the total income of a business and is calculated by multiplying the quantity of.

It appears in figure 4 as the area of a rectangle whose bottom left corner is the origin and top right corner is a point on the demand curve. Khan academy total revenue and elasticity part of a larger course on microeconomics. This video overviews the concept of total revenue. Total revenue in economics refers to the total receipts from sales of a given quantity of goods or services.

However if the price is 70 dollars the demand is 5000. The relationship between average cost and quantity is the average cost function. After some research a company found out that if the price of a product is 50 dollars the demand is 6000. Then you will need to use the formula for the revenue r x p x is the number of items sold and p is the price of one item.

This is calculated by dividing the total cost by the quantity.