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How are call and put options used to value starting,stopping,and restarting commodity extraction projects? Ask students to identify the calls and puts in each situation.
Total Revenue
The total income received by a firm from selling its products; calculated by multiplying the price per unit by the number of units sold.
Market Price
The current price at which an asset or service can be bought or sold in a particular market, determined by the supply and demand for it.
Average Revenue
The average amount of money received per unit of product or service sold, calculated by dividing total revenue by the number of units sold.
Marginal Revenue
The additional revenue that a firm receives from selling one more unit of a product or service.
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