Total revenue is the total receipts of a firm from the sale of any given quantity of a product.
It can be calculated as the selling price of the firm's product times the quantity sold, i.e. total revenue = price × quantity, or letting TR be the total revenue function:
where Q is the quantity of output sold, and P(Q) is the inverse demand function (the demand function solved out for price in terms of quantity demanded).
Famous quotes containing the words total and/or revenue:
“The techniques of opening conversation are universal. I knew long ago and rediscovered that the best way to attract attention, help, and conversation is to be lost. A man who seeing his mother starving to death on a path kicks her in the stomach to clear the way, will cheerfully devote several hours of his time giving wrong directions to a total stranger who claims to be lost.”
—John Steinbeck (1902–1968)
“If you tax too high, the revenue will yield nothing.”
—Ralph Waldo Emerson (1803–1882)