Revenue of a Competitive Firm Total revenue for a firm is the selling price times the quantity sold. TR=(PX Q) Total revenue is proportional to the amount of output Average revenue tells us how much revenue a firm receives for the typical unit sold o In perfect competition average revenue equals the price of the goodRevenue of a Competitive Firm • Total revenue for a firm is the selling price times the quantity sold. TR = (P X Q) • Total revenue is proportional to the amount of output. • Average revenue tells us how much revenue a firm receives for the typical unit sold. • In perfect competition, average revenue equals the price of the good