Share This Article:

Economic Definition of average revenue product. Defined.

Offline Version: PDF

Term average revenue product Definition: 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.

 

« monopoly average revenue curve | average revenue product curve »

Permalink: http://glossary.econguru.com/economic-term/average+revenue+product

Alphabetical Reference to Over 2,000 Economic Terms