Revenue

Concepts of Revenue Revenue means the sale receipt of the quantity or output produced in a firm. a.                  Total revenue (TR) Total revenue (TR) is the value of a firm’s sales. In other words, total revenue refers to the total amount of money that a firm can obtain from the sales of its product. The formula is shown as below: TR = P x Q For example, Firm JLQ sells 5000 pair of shoes at the rate of RM50.00. Firm JLQ’s total...

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Relationship between Marginal Cost (MC) and Average Cost (AC).

1. Relationship between Marginal Cost (MC) and Average Cost (AC). [based on the above picture]2. Relationship between Marginal Cost (MC) and Average Variable Cost (AVC). [just change the "AC" to "AVC"] Example Question : Explain the relationship between marginal cost and average cost. [6 marks] suggestion answer:  Diagram 2 marks explanation = 4 mark...

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Cost of Production

Cost of production refers to the expenses incurred by the producer in producing a particular quantity of output. There are 7 types of short-run costs: ...

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Law of Diminishing Marginal Returns

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Types of Production

Types of Production ...

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Short-run and Long-run Production

Short-run and Long-run Productio...

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factors of production

Factors of Production Land Labour Capital Entrepreneurship...

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Definition of Production

INTRODUCTION This topic discusses all the theories of production. This involves the use of production factors in producing the most effective level. In addition, manufacturers also need to use the correct scale to ensure that the resulting output to fulfill the law of diminishing marginal returns. In this chapter also, we will explain the relationship between cost and output. We will define the cost involved in production process, identify various types of costs and need to analyze short run costs and long run costs. At the end of this chapter,...

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example final exam : Demand and Supply

Example of final exam questions Section A; Multiple choice questions 1.                  A market is in equilibrium A.                  provided there is a surplus of the product B.                  at all process above the intersection point of the supply and demand curves C.                 ...

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