Costs, Revenues, Profits, and Objectives (Edexcel A-Level Economics A): Quizzes

$\text{Price} \times \text{Quantity Sold}$

Average revenue

MR falls at twice the rate of AR

Where $\text{MR} = 0$

$\text{MR} = \text{MC}$ with MC cutting MR from below

Minimum profit to keep firm operating

When price falls below AVC

Where $\text{MR} = 0$

$\text{TR} = \text{TC}$ (including normal profit)

Limited ability to make fully rational decisions