If the price elasticity of demand for a firms output is elastic, then the firms marginal revenue is the correct answer was. The exact wording may vary, but you can look for terms like gross revenue, gross sales, or total sales. Revenue is the total amount of income generated by the sale of goods or services related to the companys primary operations. Average revenue is equal to marginal revenue between zero units of output and one unit of output. Revenue is the total income generated by the sale of goods or services related to the companys core operations. Is it true or false that the objective of a firm is to maximize total revenue. The top line refers to a companys revenues or gross sales. Revenue is often referred to as the top line because it sits at the top of the income statement. The breakeven point is that level of activity where. Revenue is often referred to as the top line because it sits at the top of. Analyzing revenue and sales on your income statement.
Total revenue in economics refers to the total receipts from sales of a given quantity of goods or services. The shutdown point is the output level at which total revenue is equal to the total variable cost. True or false profit equals total cost less total revenue. Previous question next question get more help from chegg. Revenue is often referred to as the top line because it sits at the. Here the product price is also equal to its average variable cost. Putting together the total cost portion of the equation is the most intensive aspect of the total cost and total revenue method.
The first line on any income statement or profit and loss statement deals with revenue. Economic profit is equal to total revenue minus the explicit cost of producing goods and services. The graph above shows the demand and cost conditions. This figure is the amount of money a business brought in during the time period covered by the income statement. The graph above shows the demand and cost conditions facing a monopolist. A firms total profit is generally at a maximum when the firms average revenue curve is above its average cost curve and the vertical distance that separates the two curves is at a maximum.