How is a total revenue and a marginal revenue related?
Total revenue is just that. It is the total revenue that comes in for all units sold. If you have a competitive market where all firms are price takers and all units are sold at the same price, then total revenue is Price X Quantity.Marginal Revenue is defined as change in total revenue divided by change in quantity. If after selling 5 units a firm has $20 and after selling 6 units the firm has $25 then the marginal revenue of the 6th unit is $5.One way to think about the relationship between marginal revenue and total revenue is that total revenue is the sum of the marginal revenues for each unit of a good that is sold.If you sell 0 units you have $0. If you sell the first unit for $9 the total revenue and marginal revenue for that sale is $9. If you sell a second unit for $6 that $6 is your marginal revenue and your total revenue is $15. If you sell two more units together for $10, the marginal revenue for the 3rd and 4th units are $5 each and your total revenue is $25.
How do you calculate total revenue?
Total Revenue (TR) is calculated by multiplying the quantity of goods sold (Q) by the price of the goods (P).For example if you sold 120 pens for 2$ each:[math]TR = Q*P[/math][math]TR = 120*2[/math][math]TR = 240$[/math]To find your Profit:You will have to subtract the Total Cost (TC) from your Total Revenue (TR).lets say the pens costed you 100$ to manufacturer and advertiser,Your Total Cost (TC) Would be: 100$.[math]Profits = TR - TC[/math][math]Profits = 240$- 100$[/math][math]Profits = 140$[/math]
How does cost affect total revenue?
The more cost you have to obtain revenue, the less revenue you will have. The less cost, the more revenue.
How can you determine the Excel formula for total revenue?
Hi,Let’s say you have a list of items that your company sells and their corresponding costs, like this:In the next column, you could type how many of each item you sold, like this:And in the next column, multiply the cost per item by the amount sold for each item like this:This will give you a breakdown of how much money was made off of each individual item:The last thing you have to do to get a total revenue would be to add up all of the numbers in the “Total” column. You can use the =SUM function like this:This example give you a total revenue of $248.46:I hope this helps! Let me know if something is still unclear.
What is the total revenue formula used in MS Excel?
I assume that you need a function/formula to calculate Total revenue of some products or something like that… (correct me if I’m wrong)Product name in ‘A’ Colquantities in ‘B’ ColPrice in ‘C’ ColThenYou can use SUMPRODUCT function where you want have total revenue: =SUMPRODUCT(B2:B10,C2:C10)In column ‘D’: =B2*C2 (drag till the end / double click on corner of the cell) at the Last + 1 cell or ‘D11’ = SUM(D2:D10)Thank you.
Find the price that maximizes total revenue. What is the elasticity of demand at this point? What is the total
if the demand function is Q = 2000 - 4P, which means P = 500 - Q/4 , Total revenue is given by P*Q= (500 -Q/4) * Q = 500Q - (Q^2)/4 Therefore marginal revenue is given by ( taking first derivative of total revenue w.r.t. Q), MR = 500 - 2Q/4 For profit maximization, MR should equal Marginal Cost MC = $100. So, 500 - 2Q/4 = 100, or, Q/2 = 400, or, Q= 800 . Using Q= 800 in the demand equation, we get P = 500 - 800/4= 500 - 200 = 300. So the profit maximizing output is 800 tonnes and profit maximizing price is $300. Management is trying to maximize Revenue rather than profit by deciding to reduce price and increase quantity sold.
When and why is total revenue maximized?
When prices are set at the point where marginal costs equal marginal revenue; this is because this is the point at which increasing or decreasing prices will decrease total revenue.Note that there are also other pricing-strategies such as “flooding,” where price is set lower in order to increase product-awareness, or “prestige-pricing,” where it’s set higher in order to improve product-image.
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.
What is Second Chance's total revenue if it sets a price of $5,000 per car?
----------------------------------------... Price/ Cars Demanded /Total Revenue /Marginal Revenue --------------------------------------... $10,000 0 $0 -- $9,000 100 $900,000 $9,000 $8,000 200 $1,600,000 $7,000 $7,000 300 $2,100,000 $5,000 $6,000 400 $5,000 500 $4,000 600 $3,000 700 $2,000 800 $1,000 900 $0 1,000