# What does the sun product of price times quantity divided by average price

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!

• 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 Feb 6 at 14:59

## 1 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"?