Final answer:
Pricing strategies and taxes are two commercial practices that can affect revenue. Overproduction leads to price drops and reduced revenue, whereas shortages can raise prices and potentially increase revenue. Taxes must be balanced to avoid negatively impacting industry revenue.
Step-by-step explanation:
Two commercial practices that can fundamentally affect the amount of revenue reported are pricing strategies and the imposition of taxes. For example, an overproduction may lead to a drastic drop in prices due to supply exceeding demand, which ultimately decreases revenue. This scenario is particularly relevant in agricultural contexts, such as with coffee farmers, where a surplus in production leads to lower market prices. On the contrary, poor production conditions, such as bad weather, can lead to a decrease in supply and a consequent increase in prices. This situation, though yielding less product, can result in higher overall revenue due to the elevated prices.
Additionally, government policies, particularly tax measures, can also impact revenue. When a government institutes a tax, it needs to ensure that it does not excessively burden the industry, as this might not only reduce the industry's revenue but could also hamper its overall health and productivity.