Calculator
Definition – What is average revenue?
Average revenue is the average amount of revenue received for each item sold.
Formula – How to calculate average revenue
Average Revenue = Total Revenue ÷ Quantity
Example
Total revenue is $500,000 and 400 units are produced.
Average Revenue = $500,000 ÷ 400 = $1,250
Therefore, average revenue is $1,250 per unit.
Sources and more resources
EconomicsDiscussion.net – Average Revenue and Marginal Revenue calculation – a page that overviews the concept of Average Revenue.