Revenue Concepts
1
, Total Revenue, Average
Revenue and Marginal Revenue
• Revenue maximization (Objective of the
seller/Firm).
• Each seller has sufficient market power to
set the selling price higher and sell less or
set the selling price lower and sell more.
• The demand curve facing the consumer is
downward sloping.
2
1
, Total Revenue, Average
Revenue and Marginal Revenue
• Revenue maximization (Objective of the
seller/Firm).
• Each seller has sufficient market power to
set the selling price higher and sell less or
set the selling price lower and sell more.
• The demand curve facing the consumer is
downward sloping.
2
