Output elasticity
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
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