Total revenue and total cost?
I took economics last semester and I think but not too sure that it is a marginal cost.
How does total revenue and total cost relate?
Total revenue more than total cost = profit.Total revenue less than total cost = lossTo generate revenue, cost need to be incurred. Therefore,No cost = no revenueHowever, there is no guarantee that after you incur cost, there will automatically be revenue. So, you must have a pool of fund that you are prepared to lose when you can’t generate revenue. This is called Capital.It capital is made up of your own fund = equityIf you borrowed the fund for use as capital = loanIt you put in 20% of capital required and raised the other 80% from borrowing = leverage.
If average revenue equals average total cost,?
This Site Might Help You. RE: If average revenue equals average total cost,? a.total revenue is maximized b.average revenue is maximized c.economic profit is maximized d.economic profit is zero
What is the importance of total revenue and total costs in determining profits?
Profits are calculated by: revenue - total costs.Which can also mean benefits- costs=surplus.If total costs decrease as the amount of quantity produced increases - we are better off producing more.If total costs are increasing at a faster rate than benefits - we are better off producing less.Hence, total costs and revenue are paramount in making economic decision.
Economic Profit = Total revenue - Total costs - Opportunity cost?
This might not be entirely correct, but here is start. Profit is TR- TC so 650-450 = TP of $200. However, for Freddy to profit maximizing his marginal revenue should equal his marginal cost, and if that is not possible at the very least MR>MC not the other way around. At three pianos his MR is 150 and MC is 100; however at 4 pianos his MR is 125 and MC is 200. That means he is actually losing money by tuning the 4th piano. So although the more optimal amount of work would be something like 3.5 pianos, in this situation, I believe freddy would only want to tune three pianos and make $75 dollars more. ($275 vs 200) You should probably wait for a second better answer as I am interpreting this question too straightforwardly and thus probably wrong.
How do you calculate total revenue?
Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold.Revenue = Price of Goods × No. of units soldRevenue is the amount of money that is brought into a company by its business activities.Methods of Calculating Revenue:-There are different ways of calculating revenue, depending on the accounting method a business employs.1] Accrual accounting –Accrual accounting will include sales made on credit as revenue, as long as the goods or services have been delivered to the customer. Reported as an asset on the balance sheet until cash is received at a later time.2] Cash accounting –Cash accounting, on the other hand, will only count sales as revenue if the payment has been received. When cash is paid to a company, this is known as a "receipt" to distinguish it from revenue. It is possible to have receipts without revenue - for example, if the customer paid in advance for a service that has not been rendered or goods that have not been delivered, this activity leads to a receipt, but not revenue.Types of Revenues:-Technically there are a variety of revenues, classified according to how they were earned in the business. However, revenues can be broken down into two main types:1] Operating Revenue –Any revenue made through normal business operations (the day-to-day sales of products or a service) is considered operating revenue.2] Non-operating Revenue –Essentially, this includes any revenue made through means other than the daily operations, such as interest earned on investments or money made from selling an asset. Non-operating revenues are considered secondary.3] There is an additional type of revenue called Deferred Revenue. Deferred revenue refers to any payments that are made in advance of a product being delivered or service completed.For more watch the video posted by YADNYA INVESTMENT ACADEMY on YouTube.
What do you mean by marginal cost and marginal revenue?
MARGINAL COSTMarginal cost is the cost added by producing one extra item of a product. For eg. Let's suppose you are manufacturing mobile phones. Marginal cost is the cost incurred to produce addition unit of mobile phone.MARGINAL COST OF PRODUCT =CHANGE IN TOTAL PRODUCTION COST / CHANGE IN TOTAL QUANTITY PRODUCEDWherein total cost includes fixed as well as variable cost.Marginal cost of product will keep on reducing or decreasing as the production keep on rising until the company has to incure addition cost to products additional unit.For instance a company can manufacture maximum of 30000 phones in a factory. To manufacture an extra phone the company will have to buy a new factory, warehouse, workers, etc. So at this point the next unit produced will have a higher marginal cost.MARGINAL REVENUEMarginal revenue is similar to marginal cost. Marginal revenue is change in total revenue when an extra unit of product is sold.MARGINAL REVENUES OF PRODUCT =CHANGE IN TOTAL REVENUE / CHANGE IN QUANTITY PRODUCEDIf a business sells all of its goods at market price then the marginal revenue is equal to that of market price.MARGINAL REVENUE IS REVENUE GENERATED BY THE LAST UNIT SOLD.
How do you find total cost if you are only given price and quantity?
If that is seriously all the data you have then you can't. You'd need marginal cost to figure things out. However, if you are talking about a firm in perfect competition then price is marginal cost. If it is a monopolistically competitive firm and you had the demand curve you could then figure out the marginal revenue curve. Then find out where the quantity level cuts the MR curve and that would give you marginal cost.
What is the relationship between a firm’s total revenue, profit, and total cost?
Total revenue is all the money a business had made from its total operations (total cost- marketing, employee wages, etc.) The profit is the revenue-expenses.
How can I calculate total revenue with the given assets, liabilities, equity, and total expenses? How can I calculate total expenses with given assets, liabilities, equity, and total revenue?
Thanks for the question Joelle,I think you are mixing items together that don't make a formula. I will assume you didn't take accounting. In order to see what is reported from any company just look at: 1. Balance Sheet. 2. Cash flow statement. 3. Income Statement.Of course, this is assuming that the company reported all of these items truthfully and continues to use the same accounting practice year over year.