Assignment: economics

Class: B.S. Sociology

Roll no:
Department of Sociology Ghazi University
Pakistan

Revenue

Revenue, in economics, the income that a

firm receives from the sale of a good or
service to its customers.
revenue is calculated by multiplying the
price (p) of the good by the quantity
produced and sold (q). In algebraic form,
revenue (R) is defined as R = p × q.
TR = (p1x q1) + (p2x q2) + … + (pnx qn)
 Cost

A cost is anything that a business has to pay for.

All businesses have costs that need to be paid
regularly. Examples of costs for a business
include rent, bills, and raw materials, staffing
costs, petrol and postage.

Costs are split into three main categories: fixed,

variable, and total costs.
Fixed costs are costs for a business that do not
change, no matter what the level of output for
the business. They are usually fixed for at least a
year and mean that a business will pay the same
amount each week, month or year.

Examples of fixed costs include:

rent
insurance
salaries of staff
Variable costs are costs that change depending
on the output of a business. These costs are
dependent on how much a business produces
or sells. If a business is producing or selling
more, variable costs will rise. If a business is
producing or selling less, variable costs will fall.

Examples of variable costs include:

petrol
postage
raw materials
wages (staff paid per hour)
Total costs are the fixed and variable costs for
the business added together, giving the total
overall costs for the business. The calculation
for total costs is:
Total costs = Fixed costs + Variable cost