average revenue

Average Revenue

The total revenue a company or project collects from sales divided by the number of units sold over a period of time.

Fig. 12 Average revenue. The demand curve or average revenue curve.

average revenue

the total revenue received (price X number of units sold) divided by the number of units. Price and average revenue are in fact equal: i.e. in Fig. 12, the price £10 = average revenue (£10 X 10 ÷ 10) = £10. It follows that the DEMAND CURVE is also the average revenue curve facing the firm.