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What type of revenue typically comprises net fee and commission income trading revenue and other income?
Non interest revenue
Is service revenue an asset or liability?
Services revenue is revenue same as product revenue and it is not an asset or liability of the business.
Gain on sale of land is an asset or revenue?
It's a revenue. However, it's not a "Sales revenue", it's a "Other revenue".
What is the journal entry for prepaid revenue?
prepaid revenue is debited and revenue is credited
Unearned revenue is a contra revenue account?
Unearned Revenue is a Liability Account
What is marginal revenue?
Marginal revenue is the change in total revenue over the change in output or productivity.
What is the formula to get the MR in economics?
Marginal Revenue (MR) = Change in Total Revenue / Change in Q
What revenue is the change in total revenue that results from selling one more unit of output?
Marginal Revenue =
What is a change to the total revenue resulting from the sale of one more unit of output in aa perfectly competitive from?
The change of total revenue per unit sold is known as marginal revenue. In a perfectly competitive firm, marginal revenue = marginal cost = price.
What questions is the price elasticity of demand designed to answer?
Price elasticity of demand is used to determine how changes in price will effect total revenue. If demand is elastic(>1) a change in price will result in the opposite change in total revenue.(+P=-TR) When demand is unit elastic(=1) a change in price wont change total revenue. If demand is inelastic a change in price will result in a change in total revenue in the same direction.(+P=+TR)
Differentiate average revenue and marginal revenue?
Average Revenue: Total revenue divided by the number of units sold. Marginal Revenue: Is the extra revenue that an additional unit of product will bring. It is the additional income from selling one more unit of a good; sometimes equal to price. It can also be described as the change in total revenue ÷ the change in the number of units sold. Relationship: They both are the revenue brought in by, in this case, units sold. They are both used to calculate the total revenue just that marginal is any exrta revenue that the average revenue has left over.
What determines how a change in prices will affect total revenue for a company?
values of elasticity
Does the change in revenue link to the price elasticity of demand in any way?
not really
Establish the relationship between average revenue and marginal revenue and elasticity of demand?
Price elasticity of demand is defined as the measure of responsivenesses in the quantity demanded for a commodity as a result of change in price of the same commodity.In other words, it is percentage change in quantity demanded as per the percentage change in price of the same commodity. In economics and business studies, the price elasticity of demand (PED) is a measure of the sensitivity of quantity demanded to changes in price. It is measured as elasticity, that is it measures the relationship as the ratio of percentage changes between quantity demanded of a good and changes in its price. Drinking water is a good example of a good that has inelastic characteristics in that people will pay anything for it (high or low prices with relatively equivalent quantity demanded), so it is not elastic. On the other hand, demand for sugar is very elastic because as the price of sugar increases, there are many substitutions which consumers may switch to. In microeconomics, Marginal Revenue (MR) is the extra revenue that an additional unit of product will bring. It can also be described as the change in total revenue/change in number of units sold. More formally, marginal revenue is equal to the change in total revenue over the change in quantity when the change in quantity is equal to one unit (or the change in output in the bracket where the change in revenue has occurred) This can also be represented as a derivative. (Total revenue) = (Price Demanded) times (Quantity)
Why average revanue is equal to marginal revanue in imperfect competiton?
Average Revenue (AR) is equals to Marginal Revenue (MR) in Perfect competition (PC) not imperfect competition. AR can be derived from the formula= Total revenue(TR) / Quantity. Since TR = Price x Quantity, the formula now will be Price x Quantity/ Quantity and naturally, AR equals to Price. Marginal Revenue can be measured by the formula= Change in total revenue/ Change in quantity (which is 1). Since the change in total revenue will be equals to the price of the product, MR in this case will be the Price of the product. From here we can see that Price = MR = AR = Demand.
Why is the demand curve the same as the marginal revenue curve for a perfectly competitive firm?
Because for a perfectly competetive firm since the demand curve is perfectly elastic even a slightest price change doesnt add any further demand..so there is no change in marinal revenue also.Since revenue is demand multiplied with cost of unit..the two curves are same.
Definition of incremental revenue?
Incremental Revenue is the increase of revenue between a new revenue and a previous revenue, thus the formula: Incremental Revenue = New Revenue - Previous Revenue
