Examples of Total Revenue in the following topics:

 The total revenuetotal cost perspective and the marginal revenuemarginal cost perspective are used to find profit maximizing quantities.
 The various types of cost curves include total, average, marginal curves.
 There are two ways in which cost curves can be used to find profit maximizing quantities: the total revenuetotal cost perspective and the marginal revenuemarginal cost perspective.
 The total revenuetotal cost perspective recognizes that profit is equal to the total revenue (TR) minus the total cost (TC).
 The marginal revenuemarginal cost perspective relies on the understanding that for each unit sold, the marginal profit equals the marginal revenue (MR) minus the marginal cost (MC).

 The profit is the difference between a firm's total revenue and its total cost.
 MR (Marginal Revenue) = Change in Total Revenue / Change in Quantity
 The marginal revenue (MR) is the change in total revenue from an additional unit of output sold.
 When price is less than average total cost, firms are making a loss.
 Calculate total revenue, average revenue, and marginal revenue for a firm in a perfectly competitive market

 The monopoly's total revenue is equal to the price of the widget multiplied by the quantity sold: P(302P).
 This can also be rearranged so that it is written in terms of quantity: total revenue equals Q(30Q)/2.
 We know that all firms maximize profit by setting marginal costs equal to marginal revenue.
 Finding this point requires taking the derivative of total revenue and total cost in terms of quantity and setting the two derivatives equal to each other.
 At this point, the price of widgets is $13.50, the monopoly's total revenue is $40.50, the total cost is $18, and profit is $22.50.

 In the short run, a firm that is operating at a loss (where the revenue is less that the total cost or the price is less than the unit cost) must decide to operate or temporarily shutdown.
 When determining whether to shutdown a firm has to compare the total revenue to the total variable costs.
 If the revenue the firm is making is greater than the variable cost (R>VC) then the firm is covering it's variable costs and there is additional revenue to partially or entirely cover the fixed costs.
 A firm that exits an industry does not earn any revenue, but is also does not incur fixed or variable costs.
 Firms will produce as long as marginal revenue (MR) is greater than average total cost (ATC), even if it is less than the variable, or marginal cost (MC)

 Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs; accounting profit consists of revenue minus explicit costs.
 In one year, it cost $60,000 to maintain production, but earned $100,000 in revenue.
 The accounting profit would be $40,000 ($100,000 in revenue  $60,000 in explicit costs).
 Accounting profit is the difference between total monetary revenue and total monetary costs, and is computed by using generally accepted accounting principles (GAAP).
 Economic profit is the difference between total monetary revenue and total costs, but total costs include both explicit and implicit costs.

 Marginal cost is the change in the total cost that occurs when the quantity produced is increased by one unit .
 Marginal cost is the change in total cost divided by the change in output.
 Marginal revenue is the additional revenue that will be generated by increasing product sales by one unit.
 Marginal revenue is calculated by dividing the change in total revenue by the change in output quantity.
 This strategy is based on the fact that the total profit reaches its maximum point where marginal revenue equals marginal profit .

 The marginal revenue product of labor is the change in revenue that results from employing an additional unit of labor.
 The marginal revenue product of labor (MRPL) is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant.
 The marginal revenue product of a worker is equal to the product of the marginal product of labor (MPL) and the marginal revenue (MR) of output, given by MR×MP: = MRPL.
 Theory states that a profit maximizing firm will hire workers up to the point where the marginal revenue product is equal to the wage rate, because it is not efficient for a firm to pay its workers more than it will earn in revenues from their labor.
 Define the marginal product of labor under the marginal revenue productivity theory of wages

 revenue, and their spending, i.e. costs.
 To find the profit maximizing point, firms look at marginal revenue (MR)  the total additional revenue from selling one additional unit of output  and the marginal cost (MC)  the total additional cost of producing one additional unit of output.
 The marginal revenue curve for monopolies, however, is quite different than the marginal revenue curve for competitive firms.
 Production occurs where marginal cost and marginal revenue intersect.
 Production occurs where marginal cost and marginal revenue intersect.

 The longrun equilibrium of a perfectly competitive market occurs when marginal revenue equals marginal costs, which is also equal to average total costs.
 The demand curve also represents marginal revenue, which is important to remember later when we calculate quantity supplied.
 So a firm will produce goods until the marginal costs of production equal the marginal revenues from sales.
 So the equilibrium will be set, graphically, at a threeway intersection between the demand, marginal cost and average total cost curves.
 Firms can't make economic profit; the best they can do is break even so that their revenues equals their costs.

 Firms will demand labor until the marginal revenue product of labor is equal to the wage rate.
 The additional revenue generated by hiring one more unit of labor is the marginal revenue product of labor (MRPL).
 The marginal revenue product of labor (MRPL) is the additional amount of revenue a firm can generate by hiring one additional employee.
 The amount a factor adds to a firm's total cost per period is the marginal cost of that factor, so in this case the marginal cost of labor is $10.
 Explain how a company uses marginal revenue product in hiring decisions