We use essential cookies to sign you in and remember your settings. With your permission we also use analytics cookies to understand how the site is used. See our privacy policy or fine-tune this anytime at cookie settings.

SubjectPaid lesson

Revenue concepts

ClassNotes Team 2 MIN READUPDATED 4 JUL 2026

Economics SSS 2 First Term

WEEK 7

Revenue concepts

Performance Objectives

Student should be able to:

  1. Explain the meaning of revenue.
  2. Explain the concept of total, average and marginal revenue.
  3. Draw relevant revenue schedules and curves.

Content           

Definition of Revenue and Profit

Revenue may be defined as the income generated from normal business operations and includes discounts and deductions for returned merchandise. Alternatively, it refers to all the money income accruing to a firm from the sale of goods and services, assets or investment.

Profit may be defined as the difference between the total revenue and total cost. It is expressed mathematically as: P= TR-TC.

The profits earned by a firm depend on the relationship between its cost and revenue.…