1. Determinations of a firm's revenueThere are numerous different opinions on identification revenue, thus it is necessary to define this properly. The revenue makes up the prime part of firm 's yields. It is obvious not only in production of goods but also in service sector. They mean money, which the firms gain through selling their goods and services in a particular accounting year. They make up main financial source of the firm, which uses it for paying fees, taxes, costs, and dividends and as an instrument of extended reproduction. Revenues are receipts from selling of produced goods and provided services, purchased goods and stocks, useless assets, patents and licences, etc. The value of particular terms is recorded in profit and loss account. The revenue of produced goods or/and provided services is of great importance. It is determined by the volume of sale, prices of particular products, variety of products, way of invoicing and period of payment and other factors.
The illustration that accompanied Marshall's origi...
Perfectly inelastic demand
Perfectly elastic demandThe firm may influence the volume of sale, but to large extent it is limited by production capacity and demand. Prices are results of interaction of demand and supply. They are affected by a structure of a market, thus the firm can influence them only to some extent. But the variety of goods lies in the firm hand so its revenue may be affected by its optimisation. The way of invoicing is established by the law, thus it cannot by affected by the firm. The firm can raise its revenue by increasing of volume of sale and prices of products, improving their quality and technical level, introducing new goods, improving customer services, introducing more effective advertisement and etc. These factors are subject of marketing policy, but addressing these factors is beyond the scope of this paper. The following analysis will...