what is Average Revenue ? Give example
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Answer:
average revenue per unit is the measure of revenue generated per unit or user. ARPU is also known as average revenue per user as ARPU.
Explanation:
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Where AR stands for average revenue, TR for total revenue and Q for total output produced and sold. In our above example, when total revenue Q equal to Rs. 150 is received from selling 15 units of the product, the average revenue will be equal to Rs. 150/15 = Rs.
EXAMPLE
Average revenue is revenue per product. For example, if your firm's total revenue is $200, and you are selling 100 products, then your average revenue is $200 divided by 100, or $2.
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