Average Revenue is the per unit revenue (price) received from the sale of one unit of a commodity. With the help of following equation, we can prove AR = P.
TR
As we know, AR = TR / Q …(i)
TR = P x Q …(ii)
(Here, P = Price, Q = Quantity or output sold)
Thus, AR = PxQ / Q
Hence, it is proved that, AR = Price.