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Topic Content:
- Types of Revenue
- Total Revenue (TR)/Gross Revenue
- Average Revenue (AR)
- Marginal Revenue (MR)
- Evaluation Questions
1. Total Revenue (TR)/Gross Revenue:
These are a firm’s total receipts from its products’ sales. TR is dependent on the quantities of commodities sold and their prices so the higher the quantities sold, the higher the total revenue. It varies with the firm’s sales. The more the sales the more revenue derived.
Thus:
TR = PQ, TR = Q × P
Where Q = Quantity sold while P = Price
2. Average Revenue (AR):
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