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Output elasticity

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This is an old revision of this page, as edited by 75.183.63.216 (talk) at 06:21, 22 May 2007 (Just added on the nominal gdp bit. Most books on economics emphasize this term, so I thought it might be helpful.). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

In economics, output elasticity is the percentage change of output (GDP or revenue for a single firm) divided by the percentage change of an input.

It is calculated as marginal product of an input to its average product. It is a local measure, defined at a point.

Marginal Revenue(MR), also sometimes called incremental revenue, is the change in the Total Revenue divided by the change in the Quantity supplied(QS). (Change in TR/Change in QS).

Total Revenue(TR) is the total amount of revenue gained by a seller; that is, Price X Quantity (PXQ), and is sometimes referred to as Nominal GDP, in current dollar value.

Average Revenue(AR): TR/Q, or the amount of revenue gained by the sale of 1 unit.

See also

elasticity (economics)

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