Economics SSS 2 First Term
Student should be able to:
- Explain the meaning of revenue.
- Explain the concept of total, average and marginal revenue.
- Draw relevant revenue schedules and curves.
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. If the firm’s total revenue exceeds its total cost, the firm.... View More
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