Total revenues for a business firm in the US are equal to:

Question

Quizplus · Accepted Answer

Total revenue (TR) for a business firm in the US is calculated by multiplying the price (P) of a good or service by the quantity (Q) sold. Therefore, the correct formula would be TR = PQ. (B) is incorrect because adding price and quantity would not give the total revenue. (C) is incorrect because it adds the price to the product of price and quantity, which is incorrect. (D) is incorrect because (A) is the correct formula for total revenue.

Total Revenues for a Business Firm in the US Are