Question

Total revenue is the:

a) Profit made from selling a product or service.

b) Least number of units sold needed to cover product, distribution, and promotional costs.

c) Total money received from the sale of a product.

d) Amount at which marginal costs exceed fixed costs.

Answer 1

Total revenue is the income generated from selling products or services, calculated by multiplying the price by the quantity sold. Option number a is correct.

Step-by-step explanation:

Total revenue is the total income that a firm receives from selling its products or services. To calculate total revenue, you would multiply the selling price of the product by the quantity of the product that has been sold. This calculation can be expressed by the equation Total Revenue = Price x Quantity.

It's important to differentiate this concept from others such as profit, break-even point, or costs. Total revenue does not factor in the costs associated with making the product; it simply measures the income generated from sales.