How are the total revenue of a firm, market price and the quantity sold by that firm related to each other?
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How are the total revenue of a firm, market price and the quantity sold by that firm related to each other?
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Total revenue is said to be defined as the total sales proceeds of a producer by selling corresponding levels of output or sum total of revenue receipts from the sale of a given quantity of commodity. In other words, it can be defined as price times the quantity of output sold.

Total Revenue = Market Price x Quantity of output sold

TR = P×Q

Hence,

 TR = PQ In a perfectly competitive market, the marketplace price is given, i.e., a company can act as a price taker and cannot have an effect on the rate. subsequently, a specific firm can have an impact on its TR by altering the amount.
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