Definition: The total amount of money a firm receives from selling goods and services.
- P x Q = TR Price x Quantity = Total Revenue
Fixed Cost
Definition:A cost that does not change no matter how much is produced
- Examples: Rent, Mortgage, Insurance, and Salaries
Variable Cost
Definition: A cost that rises or falls depending upon how much is being produced.
- Example: Electricity Bill
Marginal Cost
Definition: The cost of producing one more unit of a good
- New Revenue - Old Revenue
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