Concepts of Total Revenue: Understanding how revenue behaves is crucial to economics and business strategy. Concepts of Total Revenue(TR), Average Revenue (AR), and Marginal Revenue (MR) are fundamental concepts that provide insights into how businesses earn from their sales. Each concept offers a unique perspective. TR quantifies the entirety of income derived from selling a certain quantity of goods or services; AR signifies the concept of total revenue earned per unit sold, akin to the price per unit; and MR measures the change in TR resulting from selling one additional unit. These concepts form the foundation for analysing pricing strategies, profit maximisation, and market dynamics in various economic contexts.
TR = P x Q Or TR = ∑MR
MR=ΔTR/ΔQ Or MR = TRn – TRn-1
Also Read | |
Total Revenue Formula | Marginal Product |
Concept of Auditing | Capital And Revenue Transactions |
AR=TR/ Q
Begin your journey towards academic excellence in Commerce with our comprehensive Commerce courses . Master the CBSE syllabus with expert guidance and ace your exams. Enroll now!”