Tuesday  January 31, 2023
 AmosWEB means Economics with a Touch of Whimsy!
 TR: The abbreviation for total revenue, which is the revenue received by a firm for the sale of its output. Total revenue is one of two parts a firm needs for the calculation of economic profit, the other is total cost. In general, total revenue is the price received for selling a good times the quantity of the good sold at that price. For a perfectly competitive firm, which receives a single unchanging price for all output sold, the calculation is relatively easy. For other real world firms, that charge different prices to different buyers for different quantities, the calculation can be more complex.Total revenue is very important in the analysis a firm's short-run production decision. Two other revenue measures directly related to total cost are average revenue and marginal revenue. Total revenue is often depicting as the total revenue curve. For a perfectly competitive firm, the total revenue curve is a straight line from the origin. For a monopoly, oligopoly, or monopolistically competitive firm, the total revenue curve is "hump-shaped," increasing at a decreasing rate, reaching a peak, then declining.
 Most Viewed (Number) Visit the WEB*pedia

 Lesson Contents Unit 1: An Overview Elasticity And Demand Price Elasticity Of Demand Upon Further Review Unit 1 Summary Unit 2: The Continuum Relative Adjustments Five Alternatives Three Of Five Two Of Five Unit 2 Summary Unit 3: Measurement Doing The Numbers A Range Of Values The Demand Curve Slope And Elasticity Changing Elasticity Total Revenue Expenditures And Elasticity Unit 3 Summary Unit 4: Determinants Substitute Availability Time Period Budget Proportion Unit 4 Summary Unit 5: Other Measures Price Elasticity Of Supply Income Elasticity Of Demand Cross Elasticity Of Demand Unit 5 Summary Course Home
Elasticity and Demand

Elasticity is the relative responsiveness of one variable to changes in another variable. Economists find this notion of elasticity quite useful in the study of markets. In this lesson, we examine the basics of demand elasticity, especially the price elasticity of demand.

• The first unit of this lesson, An Overview, gets us started with a review of several concepts related to elasticity and demand.
• In the second unit, The Continuum, we take a close look at how the five elasticity alternatives are reflected by demand curves.
• The third unit, Measurement, runs through some numbers for measuring the price elasticity of demand, and how elasticity values related to a straightline demand curve.
• The fourth unit, Determinants, examines how the three determinants of elasticity affect the elasticity coefficient.
• The fifth unit and final unit, Other, closes this lesson by introducing examine three related elasticity measures.

|

PERFECT COMPETITION, SHUTDOWN

A perfectly competitive firm is presumed to shutdown production and produce no output in the short run, if price is less than average variable cost. This is one of three short-run production alternatives facing a firm. The other two are profit maximization (if price exceeds average total cost) and loss minimization (if price is greater than average variable cost but less than average total cost).

 BROWN PRAGMATOX[What's This?] Today, you are likely to spend a great deal of time wandering around the downtown area seeking to buy either a weathervane with a horse on top or a case of blank recordable DVDs. Be on the lookout for small children selling products door-to-door.Your Complete Scope
 In the early 1900s around 300 automobile companies operated in the United States.
 "To understand a man, you must know his memories. The same is true of a nation."-- Anthony Quayle, Actor
 IBEX-35Stock Index (Spain)
 Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

| | | | | | | | | | |
| | | |

Thanks for visiting AmosWEB