Concept:The money a firm earns by selling its output is called total revenue.
Explanation:A firm sells a certain quantity of its product at a given price.
The total amount received from these sales is known as total revenue.
It is calculated as:
Total Revenue=Price per unit×Quantity sold For example, if a firm sells
100 units at
$5 each, then total revenue is
100×5=$500.
Total profit is what remains after subtracting total cost from total revenue.
Total cost refers to the expenses incurred in production, not the money received.
Average revenue is the revenue earned per unit sold, calculated as total revenue divided by quantity.
Hence, the amount received from sales of output is best described as total revenue.
Answer:B. Total revenue