Enter the price of a good or service, and the maximum demand of that good into this maximum revenue calculator to calculate the maximum revenue and profit.
- Margin Calculator
- MPC Calculator
- Markup Calculator
- Price Elasticity of Demand Calculator
- Deadweight Loss Calculator
Maximum Revenue Formula
The formula for calculating the maximum revenue of an object is as follows:
R = p*Q
- Where R is maximum revenue
- p is the price of the good or service at max demand
- Q is the total quantity of goods at maximum demand
Determine the maximum demand of a good and the price and that level is a little more difficult. It involves taking the derivative of a function. For more information on this, visit our price elasticity of demand calculator.
- Where p is price
- and q is the theoretical demand at max price
Maximum Revenue Definition
Maximum revenue is defined as the total maximum amount of revenue of product or service can yield at max demand and price.
How to calculate maximum revenue?
How to calculate maximum revenue?
- First, determine the total price at maximum demand.
As reference earlier, analyze the price elasticity of demand and determine the maximum demand at the highest price possible.
- Next, determine the maximum demand quantity.
Determine the quantity of goods sold at the price from step 1.
- Finally, calculate the maximum revenue.
Using the formula above, calculate the maximum revenue.
FAQ
The maximum revenue of an item is the total revenue generated at the maximum demand and maximum price.
Using the price elasticity of demand, you can better understand how demand changes with changes in price of a good or service.
Related Terms
maximum revenue calculator |
maximum revenue formula |
how to calculate maximum revenue |
maximum revenue |
how to find max revenue |
max revenue |
how to find maximum revenue of a quadratic equation |
max revenue calculator |
find maximum profit calculator |
max revenue equation |
maximum revenue equation |
finding maximum revenue |
profit max formula |
maximum total revenue |
how to find maximum revenue calculus |
find the maximum revenue |
the total revenue curve reaches its maximum at a quantity of |
maximum revenue function |
maximum revenue calculus |
find maximum revenue calculator |
finding maximum revenue calculator |
how to calculate maximum revenue in economics |