Total revenue is equal to
A)the amount of funds earned by a firm minus its costs of production.
B)the total quantity sold of a product over a given period of time.
C)the price of a product multiplied by the number of units of the product sold.
D)the monetary value of the capital (for example, plant and equipment)a firm owns.

Question

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the price of a product by the quantity sold. In other words, it is the monetary value generated from the sale of a product. Option A refers to profit, which is different from total revenue. Option B only refers to the quantity sold and does not take into account the price, which is necessary to calculate total revenue. Option D refers to the capital a firm owns, which is not related to total revenue.

Total Revenue Is Equal to