[This is part of the series: The Complete Guide To Economics 101.]

What is average revenue?

Average Revenue is the total revenue divided by the quantity sold.

This is nothing but a simple average.

All the revenue of everything over the number of everything sold.

If you are only selling one product, the average revenue is nothing but the price.

[This is part of the series: The Complete Guide To Economics 101.]

What is a competitive market?

A Competitive Market is a market with large number of both buyers and sellers.

Because of this large number of both buyers and sellers, no single buyer and seller is able to have a significant impact on setting prices.

Said different, in a competitive market, all participants are price-takers.

Good examples for this are the markets for many different commodities: oil, sugar, coffee, cocoa, etc.