Average revenue is also known as?

Average revenue refers to the revenue earned per unit of output sold, which is calculated by dividing total revenue by the quantity of goods sold. This concept reflects how much revenue a firm generates from selling each unit of product, making it a crucial metric for understanding the firm's pricing strategy and pricing power in the market.

When total revenue, which is the overall income generated from selling goods or services, is divided by the number of units sold, the result is the average revenue. This is particularly important in microeconomics as it helps in analyzing market structures and the behavior of firms under different competitive conditions.

The other options do not accurately define average revenue. Fixed cost per unit produced and total costs divided by output refer to aspects of cost analysis rather than revenue. Variable revenue generated from sales suggests a focus on fluctuating elements of revenue rather than average revenue as a consistent measure. Thus, the definition outlined in the correct choice aligns perfectly with the standard economic understanding of average revenue.