Revenue and profit (OCR A-Level Economics): Quizzes

$TR = Price \times Quantity$

Revenue per unit of output sold

The price of the good

Additional revenue from one more unit

$MR = \frac{\Delta TR}{\Delta Quantity}$

MR usually decreases

$Profit = TR - Total Costs$

Minimum profit to keep firm in business

When TR = Total Costs (explicit+implicit)

TR exceeds total costs incl. normal profit

When total costs exceed TR

Accounting profit excludes implicit costs