AVERAGE REVENUE: The revenue received for selling a good, per unit of output sold, found by dividing total revenue by the quantity of output. Average revenue, abbreviated AR, actually goes by a simpler and more widely used term... price. Average revenue is really a fancy-schmancy term for the price received by a seller for selling a good. However, using the longer term average revenue let's us see the connection with other terms, like total revenue, marginal revenue, and quantity. See also | total revenue | quantity | price | marginal revenue | average revenue product | market structure | perfect competition | monopoly | market control | price taker | price maker |
