Total revenue

Total revenue is the total receipts of a firm from the sale of some given quantities of a product.

It can be calculated as the selling price of the firm's product times the quantity sold, i.e. total revenue = price × quantity, or letting TR be the total revenue function: T R ( Q ) = P ( Q ) × Q

where Q is the quantity of output sold, and P(Q) is the inverse demand function (the demand function solved out for price in terms of quantity demanded).