Total revenue is equal to ________________.

Quantity x Price per unit of the commodity.

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Average Revenue x Marginal Revenue.

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Quantity/Price.

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None of the above

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Solution

The correct option is B Quantity x Price per unit of the commodity.
Total revenue is the price of each unit sold multiplied by the quantity of product sold. Total revenue is what the firm receives in exchange for output sold.

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Similar questions

Explain the relation between marginal revenue and average revenue when a firm is able to sell more quantity of output :

(i) at the same price.

(ii) only by lowering the price.

Explain the effect of the following on the supply of a commodity :

(a) Fall in the prices of factor inputs.

(b) Rise in the prices of other commodities.

Define marginal revenue. State the relation between marginal revenue and average revenue when a firm :

(i) is able to sell more quantity of output at the same price.

(ii) is able to sell more quantity of output only by lowering the price.

Quantity sold	TR	MR	AR
0 1 2 3 4 5 6

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