Concept of Revenue Short Answer Type Questions Question
1. Explain the meaning of revenue. Answer: Revenue is the the value obtained by
producer or firm by selling its product. Thus, total revenue received includes
the cost of the item as well as the profit. A product or seller of a commodity
is also very much concerned with the demand for it, mainly because revenue obtained
by him from selling the good depends largely upon the demand for the good. He
is, therefore interested in knowing what sort of demand curve faces him. The
demand curve of the consumers for a product is the average revenue curve from
the standpoint of the sellers, since the price paid by the consumers is the
revenue of the sellers. Question
2. What is the meaning of Total Revenue? How is it calculated? Explain with
example. Answer: The total sales value received in terms of rupees from the quantity of
a product produced sold. The total sales value received by the seller from
selling a given amount of the product is called total revenue. T…
