Total Revenue from Price and Quantity

Steps:

• Define total revenue as the total income from selling a product.
• Recall the formula: total revenue (TR) = price (P) × quantity demanded (Qd).
• Identify the operation in the question: multiplying price by quantity demanded.
• Match this directly to the total revenue formula, eliminating unrelated options.

Why D is correct:

• Total revenue is defined as TR = P × Q, the total earnings from sales at a given price and quantity demanded.

Why the others are wrong:

• A: Average revenue is total revenue divided by quantity (AR = TR/Q), not the product of price and quantity.
• B: Total cost measures production expenses, unrelated to price or sales revenue.
• C: Total cost measures production expenses, unrelated to price or sales revenue.

Final answer: D