3.3.2.1 Revenue | Edexcel IAL Economics Unit 3 Ch. 4

Revenue for Edexcel IAL Economics Unit 3 (WEC13), specification 3.3.2.1, Chapter 4: total, average and marginal revenue, how the curves change when a firm takes the price or sets it, and how to turn that into top marks in the exam. Specification: 3.3.2.1 Revenue (topic 3.3.2 Revenue, costs and profits) You know the content. This video shows you how to score with it: the definitions to open with, the points that build a chain of analysis, and the evaluation that reaches a judgement. In this video: ✓ The three formulas: total revenue (TR), average revenue (AR) and marginal revenue (MR) ✓ Revenue when price is constant: the price taker, where D = AR = MR = P ✓ Revenue when price falls: the price maker, and why MR is always below price ✓ Why total revenue is highest where MR = 0 ✓ Revenue and price elasticity of demand (PED) ✓ Essay practice: should a firm cut its price? When it helps, when it harms, and how to evaluate Timestamps: 0:00 A cinema cuts its ticket price: more revenue, or less? 0:32 Three kinds of revenue: TR, AR and MR 1:10 When the price is constant (price taker) 1:44 Constant price: the two diagrams 2:13 When the price has to fall (price maker) 3:20 Drawing AR and MR 3:56 Total revenue, MR and elasticity 4:50 Quick check 5:15 Exam question: the inelastic part of the demand curve 5:54 Debate: should a firm cut its price? 7:27 Quick check 7:43 Recap: Chapter 4 in five lines 8:17 Up next: Chapter 5 Next video: Chapter 5 (3.3.2.2), Cost. Fixed, variable, average and marginal cost, and how costs behave in the short run and the long run. ExamFluent teaches exam technique, not just content. Subscribe for the rest of Unit 3. #EdexcelIAL #ALevelEconomics #ExamTechnique