A firm's total output times the price at which it sells that output is:Question 8Select one:a.net revenue.b.total revenue.c.average revenue.d.marginal revenue.

Break Down the Problem

1. Identify the components involved in the question: total output, price, and the relationship between them.
2. Understand the definitions of the terms presented in the multiple-choice options.

Relevant Concepts

1. Total Revenue (TR): This is calculated as the total output produced by a firm multiplied by the price it sells that output for. Mathematically, this can be represented as: $\text{Total Revenue} (TR) = \text{Total Output} \times \text{Price}$
2. Define other terms for clarity:
   • Net Revenue: Often refers to total revenue minus any costs or expenses.
   • Average Revenue: Revenue per unit sold, calculated as total revenue divided by total output.
   • Marginal Revenue: The additional revenue earned from the sale of one more unit of output.

Analysis and Detail

• From the definitions, it is evident that total revenue is the straightforward product of total output and the price at which that output is sold. The other options either define different concepts or are calculated based on total revenue.

Verify and Summarize

• Reviewing the definitions confirms that option (b) total revenue is indeed the direct calculation from the question's statement $(\text{Total Revenue} = \text{Total Output} \times \text{Price})$.

Final Answer

The correct answer is: b. total revenue.