What is the relationship between total revenue price and quantity sold?
Total revenue of one firm is the cumulative total of revenue receipts from sale of a given amount of a commodity. It represents the market price of a certain good which is denoted as ‘p’, multiplied by that firm’s output which is denoted as ‘q’. If a firm is earning revenue by selling a certain quantity (q) of some good at a price (p) that is produced in the market, the total revenue can be related to the two parameters in the following way:
Total Revenue = Price* Quantity
TR = p*q
Couldn't generate an explanation.
Generated by AI. May contain inaccuracies — always verify with your textbook.