📚 Learning Guide
Marginal Revenue and Profit Calculations
easy

If a company sells 100 units of a product for $10 each, what is its total revenue?

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Learning Path
Learning Path

Question & Answer
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Choose the Best Answer

A

$100

B

$1,000

C

$10,000

D

$500

Understanding the Answer

Let's break down why this is correct

Answer

To find the total revenue a company makes from selling products, you multiply the number of units sold by the price of each unit. In this case, the company sells 100 units, and each unit is priced at $10. So, you calculate the total revenue by multiplying 100 by 10, which equals $1,000. This means that the company earns $1,000 from selling those 100 units. Total revenue is important because it helps businesses understand how much money they are bringing in from sales.

Detailed Explanation

To find total revenue, multiply the number of units sold by the price per unit. Other options are incorrect because This answer might come from thinking each unit sold is $1; This answer suggests a misunderstanding of multiplication.

Key Concepts

Total Revenue
Topic

Marginal Revenue and Profit Calculations

Difficulty

easy level question

Cognitive Level

understand

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