Questions and Answers
Define revenue and explain its significance in business.
Revenue is the income generated from the sale of goods or services. It is significant in business as it represents the total earnings before expenses are deducted.
What is total revenue and how is it calculated?
Total revenue is the overall income generated from the sale of all units of a product. It is calculated by multiplying the quantity of goods sold by the price per unit.
Differentiate between average revenue and marginal revenue.
Average revenue is the revenue generated per unit of output, calculated by dividing total revenue by the quantity of goods sold. Marginal revenue is the additional revenue earned from selling one more unit of a product.
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