Economics
Intermediate

Marginal Revenue

The added revenue from selling one more unit of output.

Formula

MR=ΔTRΔQMR = \dfrac{\Delta TR}{\Delta Q}

Variables

MRMarginal revenue
\Delta TRChange in total revenue
\Delta QChange in quantity

Example

Revenue rises $900 for 100 more units: MR = $9

Did You Know?

For a competitive firm marginal revenue equals price, but for a monopolist it falls faster than price.

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