Economic Definition of monopolistic competition average revenue. Defined.
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Term monopolistic competition average revenue Definition: The revenue a monopolistically competitive firm receives for selling a good per unit of output sold, found by dividing total revenue by the quantity of output. Average revenue is a polysyllabic term for the price a monopolistically competitive firm receives for selling its' good. For a firm operating under monopolistic competition, average revenue decreases as the quantity of output increases. The decreasing nature of average revenue is a prime indication of the market control of a firm.