3.3.1 Revenue

• Total revenue (TR):

  (w/ formula)

  The total amount of money received by a firm from selling goods.

  TR= price (P) x quantity (Q)
• Average revenue (AR):

  (w/ formula)

  The average revenue per unit sold.

  AR= TR/Q

  (AR is equal to price).
• Marginal revenue (MR):

  The additional revenue from selling an extra unit of output.

  MR= ∆TR/∆Q