Revenue is the amount of money that a producer receives for his commodity. It is very important for us to understand the concept of commodity and how it works.
What is Revenue?
The amount of money that a producer gets in exchange for the sale proceeds is known as revenue. Revenue refers to the amount received by a firm from the sale of a given commodity in the market. For example, a firm gets Rs. 16,000 from the sale of 100 chairs, then the amount of Rs. 16,000 is known as revenue.
The concept consists of three terms – Total Revenue, Average Revenue and Marginal Revenue.