Practice Exam Questions
Price and Total Revenue (Multiple Choice Question)
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 3 Nov 2017
Here is an exam question testing student understanding of the relationship between average revenue (demand) and total revenue.
What is total revenue?
Total revenue (TR) is found by multiplying price (P) by output i.e. number of units sold. Total revenue is maximized when marginal revenue = zero.
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