Spotlight on the theory
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Calculating Total Revenue
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Total revenue is the total money received from the sale of any given quantity of output.
The total revenue is calculated by taking the price of the sale times the quantity sold, i.e.
total revenue = price X quantity.
The technique is illustrated below;
| Price |
Quantity |
Total Revenue |
| 10 |
14 |
140 |
| 12 |
13 |
156 |
The total revenue can be visualised using the supply and demand diagram.
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