<p>Note that <span class="math-container">$Q_i P_i$</span> is the total revenue from good <span class="math-container">$i$</span>. So dividing total revenue from all goods by the amount produced of all of them should give us something like "average revenue per item produced"?</p>

CC BY-SA 4.0
2019-02-06T07:25:51.257Z
2019-02-06T07:25:51.257Z
Pedro Cavalcante
<p>I have a very simple question, what is the meaning, if any, of this?</p>

<p>I.e. Economically what does the following calculation mean?</p>

<p><span class="math-container">$$
\left(\frac{(Q1\cdot P1)+(Q2\cdot P2)+(Q3\cdot P3)}{Q1 + Q2 + Q3}\right)
$$</span></p>

<p>Consider the values being in a table like the one shown below:</p>

<p><span class="math-container">$$
\begin{array}{c|lcr}
n &amp; \text{Factory A Generation of good x} &amp; \text{Factory B Generation of good x} &amp; \text{Market price for good x} \\
\hline
1 &amp; Q1 &amp; Q1 &amp; P1 \\
2 &amp; Q2 &amp; Q2 &amp; P2 \\
3 &amp; Q3 &amp; Q3 &amp; P3 
\end{array}
$$</span></p>

<p>Thank you!</p>

CC BY-SA 4.0
2019-02-06T14:59:17.200Z
The previous answer is correct. You can also say that this is the average cost per item produced as Q *P = Cost of production. Where as costs= revenue , theoretically speaking.
Mike J
<microeconomics><mathematical-economics><price-index>
What does the sun product of price times quantity divided by average price
user11015000
# What does the sun product of price times quantity divided by average price

(Asked by: username_0 on 2019-02-06)

I have a very simple question, what is the meaning, if any, of this?

I.e. Economically what does the following calculation mean?

$$
\left(\frac{(Q1\cdot P1)+(Q2\cdot P2)+(Q3\cdot P3)}{Q1 + Q2 + Q3}\right)
$$

Consider the values being in a table like the one shown below:

$$
\begin{array}{c|lcr}
n & \text{Factory A Generation of good x} & \text{Factory B Generation of good x} & \text{Market price for good x} \\
\hline
1 & Q1 & Q1 & P1 \\
2 & Q2 & Q2 & P2 \\
3 & Q3 & Q3 & P3
\end{array}
$$

Thank you!

**Tags:** microeconomics, mathematical-economics, price-index

> **Comments:**
> **username_1**: The previous answer is correct. You can also say that this is the average cost per item produced as Q *P = Cost of production. Where as costs= revenue , theoretically speaking.  

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## 1 answers

### Answer by username_2 on 2019-02-06. Score: 1 | Accepted answer

Note that $Q\_i P\_i$ is the total revenue from good $i$. So dividing total revenue from all goods by the amount produced of all of them should give us something like "average revenue per item produced"?


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