Class 11 Micro Economics Notes · CBSE
Meaning of Revenue
Meaning of Revenue — understanding what revenue is, how it moves with sales, and how it differs from profit. CBSE Class 11 Microeconomics notes with the chair example.
Last updated: 12 Sep 2026
Notes
What is Revenue?
If a firm gets ₹16,000 from sale of 100 chairs, then ₹16,000 is the revenue.
Revenue and the Level of Sales
Revenue is directly influenced by sales level — as sales increase, revenue also increases.
Revenue vs Profit
Profit
Profit = Revenue − Costs
Profit is the excess of revenue over costs.
Revenue is the money received from selling output — profit is only what remains after deducting costs.
Key Takeaways
Key Takeaways
- Revenue is the amount received by a firm from the sale of a given quantity of a commodity.
- As sales increase, revenue also increases.
- Profit = Revenue − Costs.
- Revenue ≠ Profit.