Total revenue on a monopoly graph is calculated by

• A. price x quantity
• B. total cost plus profit
• C. average revenue times quantity
• D. price plus quantity

Answer: (A)

Total revenue measures the money a firm brings in from selling goods, so it comes from selling Q units at a price P, giving TR = P × Q. On a monopoly graph, the price is the level you see on the demand curve at the quantity sold, and the revenue is represented by the rectangle with height P and width Q, i.e., price times quantity. Average revenue equals price, so AR × Q would also yield the same TR, but the standard way to express it on the diagram is simply price times quantity. The other options don’t fit because total cost plus profit mixes up different concepts, and price plus quantity has no revenue interpretation.