Total revenue is best described as:

• A. the product of price and quantity sold
• B. the difference between total cost and total profit
• C. the sum of fixed and variable costs
• D. the amount received after deducting taxes from sales

Answer: (A)

Verified step by step guidance

1. Understand the concept of total revenue in microeconomics: it represents the total amount of money a firm receives from selling its goods or services.
2. Recall the basic formula for total revenue, which is the price per unit multiplied by the quantity of units sold.
3. Express this relationship mathematically as: \(\text{Total Revenue} = \text{Price} \times \text{Quantity Sold}\).
4. Recognize that total revenue does not involve costs, profits, or taxes directly; those are related but separate concepts.
5. Conclude that among the given options, the correct description of total revenue is the product of price and quantity sold.