Question

What factors determine a company’s total revenue? Do higher prices lead to increased revenues for a company?

Answer 1

Answer:

• Any firm or company requires a more detailed form of structure for itself in order to have a well generated revenue, being able to provide enough services to the customers and clients, and the most important develop more better goods to make a reputation for itself.

• As, each company has a number of goods or items inside the market and the profit generated by these goods makes the whole revenue for the same company. As, there can not be a possibly high level of revenue for any company if it does not have the optimum number of goods been sold inside the market, so, high prices of the standard form of goods may lead to having more profit.
• For example, iPhones are way more expensive to buy by the free folk but just because its a standard set by Apple.inc to have the most advanced form of phone and other devices then people tends to buy it more often resulting in the generation of an enormous amount of revenue for the company.
• Along, with that the services provided to the users or the customers also may lead to a high profit or revenue for the company or firm inside a given market place.

Answer 2

Revenue is calculated by the number of goods sold times the price of those goods. It is different from profit, which is revenue minus costs.

Higher prices will likely not lead to increased revenue because as prices rise, demand falls and therefore the number of units sold changes.