Examine factors that will affect Total Revenue, including but not limited to:

a. Price elasticity of demand,

b. Factors that influence productivity,

c. Various measures of costs, including opportunity costs

d. Externalities and government public policy and their effect on marginal revenue and marginal cost.

a. Price elasticity of demand means the intensity with which the demand for a commodity will change if there is a change in the prices of that commodity. The intensity of change in the demand with a price change is elaborated under the price elasticity of demand. If the commodity has elastic price elasticity it will mean that reduction of prices will generate more demand and more revenue for the firm and vice versa.

b. Productivity does not influence the total revenue of a firm directly. An increase in productivity will reduce the per-unit cost of production. Reduction in per-unit cost will increase the surplus per unit sold by the producer. Hence with an increase in productivity and a simultaneous increase in sales will cause total revenue to increase.

c. Cost can be classified into implicit or accounting cost and explicit or economic costs. With a fall in the accounting cost, there will be a rise in the actual producer's surplus and will lead to an increase in revenue. With a fall in the economic cost (opportunity cost) there will be no effect on the monetary value of the total revenue of the producer.

d.Externalities can pose a change in the total revenue of a firm. Negative externalities example taxes can cause the revenue to fall and positive externalities example subsidies can cause the revenue to rise.