Friday, January 13, 2017

Notes About Revenue

Notes about Revenue (1/12-1/13)


  • Total Revenue - total amount of $ a firm receives from selling goods & services;
    • TR = P * Q
    • Remember to add a $ to the answer
  • Marginal Revenue - additional income from selling of additional unit of a good
    • Final TR - Initial TR = MR
  • Fixed Cost - a cost that does not changed no matter how much of a good is produced
    • Ex - salary, rent
  • Variable Cost - a cost that rises and falls depending upon how much is produced
  • Marginal Cost/Output
    • new Total Cost - old Total Cost

More Revenue Calculations

Total Fixed Cost - TFC
Total Variable Cost - TVC
Total Cost - TC
Average Fixed Cost - AFC
Average Variable Cost - AVC
Average Total Cost - ATC

TFC + TVC = TC
AFC + AVC = ATC
AFC * Q = TFC
AVC * Q = TVC
TFC / Q = AFC
TVC / Q = AVC
TC / Q ATC


6 comments:

  1. You might want to consider changing the text color of your blog. While it is visually appealing, it can detract from the enriching information your blog has the potential to offer.

    ReplyDelete
  2. Max, you did an excellent work with your blog you added extra details and notes like the videos and all the equations for revenue that seem like it would really help me out if I were to use it for studying. It seems like you took a good amount of time personalizing, editing, and organizing all your info in a way that would allow me to find any topic quickly. Some of the issues would be the font color but it isn't anything big as well as the GIF in the back I'm pretty sure its just me but it just captures my attention a lot in a sorts distracting me but either from those two issues great job! keep on the great blog.

    ReplyDelete
    Replies
    1. Thank you for your comment, I also agree with your issue and will work to correct them.

      Delete
  3. The format of your "More Revenue Calculations" section is slightly confusing. I have altered it, in the hopes of clarifying for other readers.

    Total Fixed Cost - TFC
    Total Variable Cost - TVC
    Total Cost - TC
    Average Fixed Cost - AFC
    Average Variable Cost - AVC
    Average Total Cost - ATC

    TFC + TVC = TC
    AFC * Q = TFC
    AFC + AVC = ATC
    AVC * Q = TVC
    TFC / Q = AFC
    TVC / Q = AVC
    TC / Q ATC

    ReplyDelete