What does "Revenue" mean?
Show Hint
Solution and Explanation
Step 1: Understanding the Concept:
The question asks for the definition of revenue, which is the income side of a firm's operations.
Step 2: Detailed Explanation:
In economics, Revenue refers to the total amount of money or income that a firm receives from the sale of its products to consumers during a specific period. It is the firm's total earnings or receipts from its business activities.
The main concepts of revenue are:
\begin{itemize}
\item Total Revenue (TR): The total sales proceeds of a firm (\(TR = \text{Price} \times \text{Quantity}\)).
\item Average Revenue (AR): Revenue per unit of output (\(AR = TR / Q\)), which is always equal to the price.
\item Marginal Revenue (MR): The additional revenue from selling one more unit of output (\(MR_n = TR_n - TR_{n-1}\)).
\end{itemize}
Revenue is a key component in calculating a firm's profit (Profit = Total Revenue - Total Cost).
Step 3: Final Answer:
Revenue is the total income a firm generates from selling its goods or services over a certain period.
Top Questions on Economics
- In human, the deficiency of vitamin E causes
- Name the type of market competition in which there are a large number of sellers in the market for a commodity, but the product of each seller differs in some respect from the product of the other sellers; and product differentiation is the cornerstone.
- Whether to use more resources in education and health or to use more resources in building military services. Which of the central problems of an economy is accurate for this?
Match List-I with List-II
List-I (Term/Name) List-II (Characteristics) (A) Privatisation (I) Work which focuses on providing services like trade, transport, financial services etc. (B) Disinvestment (II) Spread of investment into different types of economic activities in order to reduce risks. (C) Tertiary sector (III) Private companies can invest in sectors earlier reserved for the government. (D) Diversification (IV) The government sells its share in public sector companies.
Choose the correct answer from the options given below:- Budget Set is ...................
Questions Asked in UP Board XII exam
- Find the unit vector perpendicular to each of the vectors (\( \vec{a} + \vec{b} \)) and (\( \vec{a} - \vec{b} \)) where \[\vec{a} = \hat{i} + \hat{j} + \hat{k}, \, \vec{b} = \hat{i} + 2\hat{j} + 3\hat{k}.\]
- Show that the function \( f(x) = 7x^2 - 3 \) is an increasing function when \( x>0 \).
- UP Board XII - 2026
- Application of derivatives
- The radius of an air bubble is increasing at the rate of \(\frac{1}{2} \, \text{cm/s}\). At what rate is the volume of the bubble increasing while the radius is 1 cm?
- UP Board XII - 2026
- Application of derivatives
- If three vectors \(\vec{a}\), \(\vec{b}\) and \(\vec{c}\) satisfying the condition \(\vec{a} + \vec{b} + \vec{c} = 0\). If \(|\vec{a}| = 3\), \[|\vec{b}| = 4 \text{ and } |\vec{c}| = 2, \text{ then find the value of } \vec{a} \cdot \vec{b} + \vec{b} \cdot \vec{c} + \vec{c} \cdot \vec{a}.\] 5
- Prove that (4, 4, 2), (3, 5, 2) and (-1, -1, 2) are vertices of a right angle triangle.