What does the term "total revenue" represent in economics?

Total revenue in economics refers to the total amount of money received from sales of goods or services before any costs or expenses are deducted. It is calculated by multiplying the price at which goods or services are sold by the quantity sold. Understanding total revenue is essential for businesses as it indicates the potential income generated through sales, which serves as a fundamental aspect of financial performance.

In contrast, total cost of production involves the expenses incurred in creating a product or service, while total quantity of goods supplied refers to the amount available for sale in the market. Total expenses pertain to all costs associated with running a business, which also differ from total revenue since it concerns outflows rather than inflows. Thus, total revenue is a critical measure for evaluating the financial health of a business and its capacity to cover costs and generate profit.