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Total revenue is the amount of money a firm receives by selling a certain quantity of its product. In the case of a monopolist, it is the sole seller of a unique product in the market. The total revenue can be calculated by multiplying the price of the product by the quantity sold (Total Revenue = Price × Quantity).

In a monopoly, the firm has the ability to set the price of its product, as it is the only seller in the market. However, this price-setting power is not limitless – it is constrained by the demand for the product. As the price of the product goes up, the quantity demanded decreases, and vice versa. This relationship is represented by the downward-sloping demand curve.

In a monopoly, the total revenue curve (TR) is shaped somewhat like an inverted parabola. It starts from the origin (zero revenue when no product is sold) and then rises steeply, reaches a peak, and then gradually falls back down. This shape of the TR curve is determined by the relationship between price, quantity, and demand discussed earlier.

The initial upward slope of the TR curve is due to the fact that, as a monopolist increases the quantity sold, it earns more total revenue even if it has to lower the price a little to sell more units. However, after a certain point, further increasing the quantity will lead to lower price reductions that are so substantial that the total revenue will decrease despite selling more units. This is the reason for the downward slope of the TR curve after its peak. In summary, the total revenue curve for a monopolist is usually shaped like an inverted parabola due to the relationship between price, quantity, and demand in a monopoly. An understanding of how a monopolist's price-setting power interacts with the demand curve helps explain why the total revenue curve has this shape.