Total revenue

From Wikipedia, the free encyclopedia
Jump to: navigation, search
A typical marco total revenue curve (linear, not perfectly elastic demand curve illustrated)

Total revenue is the total receipts of a firm from the sale of some given quantities of a product or service.

It can be calculated as the selling price of the firm's product or service 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).

See also[edit]