Business objectives and prices GapFill

Revenue is defined as the total   salesquantitycostprofit value. It is calculated by multiplying   costspriceprofitsales and quantity.  When price elasticity of demand (PED) is one, total   profitrevenuesalesprice will be at  minimumzeroconstantunitary.   Marginal costsTotal costs Average costsFixed costs is the summation of all costs. The additional cost of producing an extra unit of a product is known as  marginal cost total cost variable costszero costs. The long-run   average cost total cost fixed costsmarginal cost is an envelope of   short-run zerolong-runmarginal average costs. At a point where diminishing marginal returns set in, marginal cost will be  fallingmaximumrisingminimum. The marginal cost must always cut the   variable cost average cost average fixed costtotal cost when the average cost is at minimum point.