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 totality of our so-called knowledge or beliefs, from the most casual matters of geography and history to the profoundest laws of atomic physics or even of pure mathematics and logic, is a man-made fabric which impinges on experience only along the edges. Or, to change the figure, total science is like a field of force whose boundary conditions are experience.”
—Willard Van Orman Quine (b. 1908)
“If you tax too high, the revenue will yield nothing.”
—Ralph Waldo Emerson (1803–1882)