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What is the formula for total revenue?

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Final answer:

Total revenue, which is the total income from sales of goods or services, is calculated by multiplying the price by the quantity sold (Total Revenue = Price × Quantity).

Step-by-step explanation:

The formula for total revenue is calculated by taking the price of a product and multiplying it by the quantity of output sold. Mathematically, it is expressed as:

Total Revenue = Price × Quantity

Total revenue represents the income a firm earns from the sales of its goods or services. This calculation is crucial for businesses to understand their financial performance. For example, if a farmer sells packs of raspberries for $4 each, selling one pack yields $4 in total revenue, selling two packs yields $8, and so on. The total revenue increases with either an increase in quantity sold or an increase in price.

User Danilo Campos
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