Output elasticity
From Wikipedia, the free encyclopedia
In economics, output elasticity is the percentage change of output (GDP or revenue for a single firm) divided by the percentage change of an input.
It is calculated as marginal product of an input to its average product. It is a local measure, defined at a point.
Marginal Revenue(MR), also sometimes called incremental revenue, is the change in the Total Revenue divided by the change in the Quantity supplied(QS). (Change in TR/Change in QS).
Total Revenue(TR) is the total amount of revenue gained by a seller; that is, Price X Quantity (PXQ), and is sometimes referred to as Nominal GDP, in current dollar value.
Average Revenue(AR): TR/Q, or the amount of revenue gained by the sale of 1 unit.
[edit] See also
 |
This economics or finance-related article is a stub. You can help Wikipedia by expanding it. |
