A firm's total revenue
A)can be read off the demand curve it faces,but only if we know total cost of production
B)can be read off the demand curve it faces,but only if we know how must output the firm sells
C)is found by multiplying price per unit by the number of units produced and sold
D)is equal to profit when inputs are fixed in the short run
E)will be positive at any level of output

Question

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the price per unit by the number of units produced and sold. The demand curve can give us information about the price and the quantity sold, but it does not take into account the cost of production, so the most accurate way to calculate total revenue is by multiplying price and quantity.

A Firm's Total Revenue