page_title: Total revenue
section_title: Monopoly
hierarchical_section_title: Total revenue / Monopoly
caption_attribution_description: English: Total revenue
context_page_description: Total revenue is the total receipts a seller can obtain from selling goods or services to buyers. It can be written as P × Q, which is the price of the goods multiplied by the quantity of the sold goods.
context_section_description: As with a perfect competitor, a monopolist’s total revenue is the total receipts it can obtain from selling goods or services to buyers. It can be written as , which is the price of the goods multiplied by the  quantity of the sold goods. A monopolist's total revenue can be graphed as in Figure 1, in which Price (P) is the height of the box, and Quantity (Q) is the width. , (i.e., total revenue) equals the area of the box. Letting TR be the total revenue function: , where Q is the quantity of output sold, and P(Q) is the inverse demand function (the demand function solved out for price in terms of quantity demanded). Continuing to use Figure 1 as an example, price can be written as a function of quantity: , and be substituted into TR(Q) to get the TR function , which is a quadratic. In Figures 2 through 4, this function is shown graphically by using an example of demand for apples. The quantity of apples demanded drops as the price increases, which leads to the changes of the total revenue.
caption: Figure 4
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