total revenue

Also found in: Acronyms.

Total revenue

Total sales and other revenue for the period shown. Known as "turnover" in the U.K.

Total Revenue

The total amount of a company's sales and other sources of income. It is important to note that revenue is distinct from earnings or profits, which takes expenses into account. Obviously, however, high total revenue is desirable for any company.
Total revenueclick for a larger image
Fig. 187 Total revenue.

total revenue

the aggregate revenue obtained by a FIRM from the sale of a particular quantity of output, equal to price times quantity. Under conditions of PERFECT COMPETITION, the firm faces a horizontal DEMAND CURVE at the going market price. Each extra unit of output sold (MARGINAL REVENUE) adds exactly the same amount to total revenue as previous units. Hence, total revenue is a straight upward sloping line (see Fig. 187 (a) ). Under conditions of imperfect competition (for example, MONOPOLISTIC COMPETITION), the firm faces a downward-sloping demand curve and price has to be lowered in order to sell more units. As price is lowered, each extra unit of output sold (marginal revenue) adds successively smaller amounts to total revenue than previous units. Thus, total revenue rises but at a decreasing rate, and eventually falls (see Fig. 187 ).

Total revenue interacts with TOTAL COST in determining the level of output at which the firm achieves its objective of PROFIT MAXIMIZATION.

References in classic literature ?
With this loss of substance and exhaustion of strength, the homes of the people will be stripped bare, and three-tenths of their income will be dissipated; while government expenses for broken chariots, worn-out horses, breast-plates and helmets, bows and arrows, spears and shields, protective mantles, draught-oxen and heavy wagons, will amount to four-tenths of its total revenue.
3 million, or five cents per share, on total revenue of $2 million, compared to a net loss of $1.
The logic of marginal reasoning is quite similar for either decision; with respect to choosing the profit-maximizing quantity of output, over the range of output for which marginal revenue exceeds marginal cost for a ppm, increased production will increase total profit because total revenue will increase more than total cost; over the range of output for which marginal revenue is less than marginal cost, decreased production will increase total profit because total revenue will decrease less than total cost.
First, the government needs to calculate its total revenues (governmental fund total revenues + enterprise fund operating revenues + enterprise fund nonoperating revenues) for the first fiscal year ending after June 15, 1999.
Total revenue slipped worldwide due to a decline in product order.
For the full year, total revenue was up 50% on 2002 at $285.
Short term, individual physicians and medical group better off with scenario 1 (increased utilization) because of increased total revenue.