What is total revenue in economics?

In the world of economics, total revenue is the amount calculated after the total sales of goods and services of a company. The income statement of a company captures the total revenue. The next question is, What is the total revenue formula? What is total revenue formula?

What is the formula of revenue?

The most common revenue function formula is that of the total revenue formula which is represented by R=PQ. Here R is the total revenue, P is the price per unit of the product or service sold and Q is the quantity of the product or the service.

What is gross annual revenue?

It is included in the company’s income statement. Under the gross annual revenue head, you can find details of the total income and the expenses that need to be deducted from it to calculate the net revenue or the net income. The Gross revenue formula is as mentioned below (total revenue minus total cost):

What is the output of the revenue function?

The output is the number of units sold for a product or service. The revenue function formula is that of the total revenue formula and is represented by, R = P X Q, where R is the revenue, P is the average price per unit and Q is the total count of products or services.