Total Revenue: This refers to the total amount received from the customers from the sale of goods or services. The formula to calculate the total revenue is: Marginal Cost: This refers to the change in cost which is incurred when an additional unit of any good or service is produced. It shall be calculated as follows: Marginal Revenue: This refers to the additional revenue that a producer or supplier receives when she/he produces or supplies an extra unit.

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Chapter 13, Problem 11P

To determine

Concept Introduction:

Total Revenue: This refers to the total amount received from the customers from the sale of goods or services. The formula to calculate the total revenue is:

Marginal Cost: This refers to the change in cost which is incurred when an additional unit of any good or service is produced. It shall be calculated as follows:

Marginal Revenue: This refers to the additional revenue that a producer or supplier receives when she/he produces or supplies an extra unit.

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