Concepts of Revenue|How many types of Revenue ?|What is total Revenue ?

  What is Revenue ?

The total amount recieved by a firm from the sale of an item is called revenue.

How many types of Revenue ?

 There are three types of Revenue ?

i) Total Revenue

ii) Marginal Revenue

iii) Average Revenue

               What is total Revenue ?

The revenue that a firm gets by selling a given output is called total revenue.

  TR =P×Q

           What is marginal revenue ?

Marginal revenue is the change in total revenue when one more unit of a commodity is sold.

              What is average yield?

Average receipts refer to revenue per unit of output.

               AR,MR legend TR price stable

                   graphical presentation

• TR is increasing at the same rate. Hence TR is represented by an upward moving straight line.

• Both AR and MR are shown as horizontal straight lines as price is constant. When AR is constant then MR is also constant and AR=PR

      AR,MR legend TR price is not stable

                 graphical presentation

• TR curve is reading decreasing rate till point B. This is because MR is falling.

• TR is maximum at point B. Because MR = 0

• TR starts falling at point B. This is because MR is negative.