Question

Total revenue is equal to total output sold multiplied by
a. Price
b. Total cost
c. Marginal revenue
d. Marginal cost

Answer 1

Total revenue equals to the total output sold multiplied by the total price of each commodity.

The price at which each commodity is sold refers to the amount of revenue that has been generated and from that a firm can actually calculate the profit that has been earned for the firm as a whole.

They can subtract the total revenue earned from the cots of production to calculate the total profit.