What is the total revenue of a shoe company equal to?
A) income minus explicit and implicit costs
B) the change in quantity sold divided by the change in price
C) price of shoes times quantity sold
D) elasticity of demand divided by percentage change in quantity

Question

Quizplus · Accepted Answer

The total revenue of a shoe company is calculated by multiplying the price of shoes with the quantity sold. This is given by the formula TR = P × Q, where TR is the total revenue, P is the price per unit, and Q is the quantity sold. Therefore, option C is the correct answer. Option A refers to the calculation of profit, option B refers to the calculation of price elasticity of demand, and option D is an incorrect formula.

What Is the Total Revenue of a Shoe Company Equal