AVERAGE REVENUE PRODUCT: Total revenue generated per unit of a variable input, keeping all other inputs unchanged. Average revenue product, usually abbreviated ARP, is found by dividing total revenue by the variable input. Average revenue product is most often used in the analysis of the demand for productive inputs. See also | total revenue | variable input | fixed input | factor demand | factor markets | average revenue product curve | average physical product | average product | total product | average revenue | quantity | monopsony |
