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Average Revenue (AR) can be defined as revenue per unit of output. Therefore, from the aforementioned equation, it can be said that AR is the rate at which output is sold, where rate refers to the price of the product. Hence, it can be said that AR is nothing, but price of the product.
Total Revenue. Total revenue is calculated as the quantity of a good sold multiplied by its price. It is a measure of how much money a company makes from selling its product, before any costs are considered. Obviously, the goal of a company is to maximize profits, and one way to do this is by increasing total revenue.