What is total revenue?

Total revenue is defined as the aggregate revenue generated from selling a certain quantity of output. It is calculated by multiplying the price per unit by the number of units sold. This measure captures the overall income a firm receives from its sales activities before any costs are deducted.

The concept is important in economics as it helps firms understand their sales performance and aids in decisions related to pricing and production levels. Understanding total revenue is vital for analyzing market structures and a firm's profitability within those structures.

In contrast, average revenue per unit sold pertains to the revenue earned per individual unit, rather than the total revenue from all sales combined. Revenue from selling one unit specifies the income from a single sale, which does not reflect the total income generated across multiple sales. Revenue minus costs refers to profit, which is a different concept altogether, focusing on the income remaining after expenses. Thus, the correct answer effectively encapsulates the total revenue picture.