Final answer:
A revenue function with a variable raised to an exponent of 2 is referred to as a second-degree equation, also known as a quadratic function.
Step-by-step explanation:
The question asks about the degree of an equation where the revenue function has a variable raised to an exponent of 2. In mathematics, this type of equation would be referred to as a second-degree equation or, more specifically, a quadratic function. A quadratic function is a second-order polynomial function that can be expressed in the form y = ax^2 + bx + c, where a, b, and c are constants, and a ≠0.
It is essential to understand that the highest exponent of the variable, which is 2 in this case, indicates the degree of the polynomial. Thus, a variable raised to the second power is indicative of a quadratic equation, and its graph will form a parabola.