Average Revenue
The average amount of money received for selling one unit of a product, or simply the price of that unit.
Barter
The practice of exchanging products and services for other products and services rather than for money
Break-even analysis
a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
Break-even chart
a graphic presentation of the break even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold
Break-even point
The quantity at which total revenue and total cost are equal
demand curve
refers to a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price
demand factors
factors that determine consumers' willingness and ability to pay for products and services
fixed cost
the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold
marginal analysis
a continuing, concise trade-off of incremental costs against incremental revenues
marginal cost
The change in total cost that results from producing and marketing on additional unit of a product
marginal revenue
The change in total revenue that results from producing and marketing on additional unit of a product
price
The money of other considerations (including other products or services) exchanged for ownership or use of a product or service
price elasticity of demand
The percentage change in quantity demanded relative to a percentage change in price
pricing constraints
Factors that limit the range of prices a firm may set
pricing objectives
specifying the role of price in an organization's marketing and strategic plans
profit equation
profit = total revenue - total cos; or profit (unit price X quantity sold) - (fixed cost + variable cost)
total cost
the total expense incurred by a firm in producing and marketing a product. it is the sum of fixed cost and variable cost
total revenue
the total money received from the sale of a product
unit variable cost
variable cost expressed on a per unit basis for a product
value
The ratio of perceived benefits to price
value-pricing
the practice of simultaneously increasing product and service benefits and maintaining or decreasing price
variable cost
the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold