Final answer:
Revenue is the income generated by an organization from selling its products and services, which is the amount customers pay. Total revenue is calculated as the product price multiplied by the quantity sold.
Step-by-step explanation:
The income that is produced through the sales function of an organization to sell products and services to customers and the amount that the customers will pay for these products and services is known as revenue. In a business context, we calculate total revenue by multiplying the price of a product by the quantity of the product sold. This formula is represented by Total Revenue = Price x Quantity. When a firm sells goods and services to households in the product market, the money households pay to the firm becomes its revenue. This is the core of the transaction between firms and households, where the firm's output becomes the household's consumption.
Total revenue is the income that is produced through the sales function of an organization to sell products and services to customers and the amount that the customers will pay for these products and services. It is calculated by multiplying the price of the product times the quantity of output sold. Total revenue represents the financial inflow generated from the sale of goods or services and is a key metric in measuring a company's performance.