Source: Image of picnic basket, public domain, http://www.clker.com/clipart-10646.html; All graphs by Justin Tapp
Total revenue divided by the quantity sold.
The additional revenue resulting from the increase of product sales by one unit.
The revenue received from selling additional units of a good/service.
In order to sell additional units, competitive firms must lower their price. The price effect represents the loss in revenue resulting from this price drop.
The amount received from sales of the good or service produced.