• Australian Business Sellers and Buyers Register

How do I calculate total revenue profit?

How do I calculate total revenue profit? 150 150 Richard Willis

Economics – profit and revenue

  • Total revenue (TR): This is the total income a firm receives. This will equal price × quantity.
  • Average revenue (AR) = TR / Q.
  • Marginal revenue (MR) = the extra revenue gained from selling an extra unit of a good.
  • Profit = Total revenue (TR) – total costs (TC) or (AR – AC) × Q.