What is the example of revenue function?
Example: A fast-food restaurant has determind that the monthly demand for their hamburgers is given by p(x) = (60,000-x)/20,000 . (a) Find the number of hamburgers this restaurant should sell in order that the revenue is maximized.
How do you write a revenue function?
For example, the most common revenue function is that for total revenue in the equation y = bx, where y is the total revenue, b is the selling price per unit of sales, and x is the number of units sold.
What is the equation to find revenue?
A simple way to solve for revenue is by multiplying the number of sales and the sales price or average service price (Revenue = Sales x Average Price of Service or Sales Price).
What is the revenue function calculator?
The revenue calculator is a simple tool that helps you to compute the total revenue made by selling a certain quantity of a good or service at a certain price.
What’s the profit function?
A profit function is a mathematical relationship between a firm’s total profit and output. It equals total revenue minus total costs, and it is maximum when the firm’s marginal revenue equals its marginal cost. A firm’s profit increases initially with increase in output.
What are revenue functions?
Revenue is the total payment received from selling a good or performing a service. The revenue function, R( ), reflects the revenue from selling “ ” amount of output items at a price of “p” per item.
What is marginal revenue example?
Therefore, the sale price of a single additional item sold equals marginal revenue. For example, a company sells its first 100 items for a total of $1,000. If it sells the next item for $8, the marginal revenue of the 101st item is $8.
What is revenue in economics?
revenue, in economics, the income that a firm receives from the sale of a good or service to its customers. Related Topics: business organization income. See all related content → Technically, revenue is calculated by multiplying the price (p) of the good by the quantity produced and sold (q).
How do you find the marginal revenue function?
To calculate the marginal revenue, a company divides the change in its total revenue by the change of its total output quantity. Marginal revenue is equal to the selling price of a single additional item that was sold. Below is the marginal revenue formula: Marginal Revenue = Change in Revenue / Change in Quantity.
Whats is revenue?
Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Revenue, also known as gross sales, is often referred to as the “top line” because it sits at the top of the income statement. Income, or net income, is a company’s total earnings or profit.