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Lê Gia Đức

on 25 April 2013

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Revenue & Marginal revenue Presentation Revenues are inflows or other enhancements of
assets of an entity or settlements of its liabilities (or combination of both)including a period from delivery or producing goods, rendering services or other activities that constitute the entity’s ongoing major or central operation . Definition revenue The change in total revenue resulting from a change in the quantity of output sold. Marginal revenue indicates how much extra revenue a firm receives for selling an extra unit of output. It is found by dividing the change in total revenue by the change in the quantity of output. Marginal revenue is the slope of the total revenue curve and is one of two revenue concepts derived from total revenue. The other is average revenue. To maximize profit, a firm equates marginal revenue and marginal cost. Summary Example: MENBERS : LE GIA DUC
NGUYEN NGOC HUY THANK FOR LISTENING For example : Table below shows how the monopoly’s revenue might depend on the amount of water produced . Definition: Marginal revenue Marginal revenue is the extra revenue generated when a firm sells one more unit of output. It plays a key role in the profit maximizing decision of a firm relative to marginal cost. A firm maximizes profit by equating marginal revenue, the extra revenue generated from production, with marginal cost, the extra cost of production. If the customer purchased the product 100 unit price is 10,000 vnđ, the total revenue will be 100 x 10,000 = 1,000,000 vnđ. Conspicuously rectangular area under the demand curve is the total revenue, calculated by the length of the width (vertical price indicated, horizontal represents the amount).
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