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Economic Definition of average revenue product curve. Defined.

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Term average revenue product curve Definition: A curve that graphically illustrates the relation between average revenue product and the quantity of the variable input, holding all other inputs fixed. This curve indicates the per unit revenue at each level of the variable input. The average revenue product curve is one of two related curves often used in the analysis of factor markets. The other is marginal revenue product curve. To be quite honest, the average revenue product curve is not nearly as important as the marginal revenue product curve. Economists are generally more interested in marginals than averages.

 

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