Total revenue refers to the overall income generated by a firm from selling its goods or services. It is calculated by multiplying the quantity sold by the price per unit.
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Marginal Revenue: Marginal revenue represents the change in total revenue resulting from producing and selling one additional unit of output.
Average Revenue: Average revenue is calculated by dividing total revenue by the quantity sold. It gives an indication of how much each unit contributes to overall revenue.
Price Elasticity of Demand: The price elasticity of demand affects total revenue because it determines whether an increase or decrease in price will lead to a proportionate change in quantity demanded, thus impacting overall sales.