marginal revenue(redirected from Marginal Revenues)
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The change in total revenue as a result of producing one additional unit of output.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The revenue that a company generates over what it previously generated for each additional unit of output. For example, suppose a company generates $1000 in revenue from 100 units of a product (in other words $10 per unit). In order to sell 101 units it may have to reduce its price to $9.99 per unit. In this case, its revenue becomes $1008.99. Thus, the marginal revenue is $8.99.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The extra revenue generated by selling one additional unit of a good or service. For example, if a firm can sell 10 units of a product at a price of $25 per unit, total revenue is $250. If, in order to sell 11 units, it must reduce the price to $24, total revenue rises to 11 × $24, or $264. Thus, the marginal revenue of the 11th unit is $264 - $250, or $14.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
marginal revenuethe extra revenue that is obtained by a firm from the sale of additional units of product. If firms are profit maximizers they will seek to equate marginal revenue with MARGINAL COST to establish that price output/sales combination which yields an optimal return. See BUSINESS OBJECTIVE.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
marginal revenuethe addition to TOTAL REVENUE from the sale of one extra unit of output. Under conditions of PERFECT COMPETITION, the firm faces a horizontal DEMAND CURVE at the going market price (marginal revenue = price). See Fig. 119 (a) . Marginal revenue interacts with MARGINAL COST in determining the level of output at which the firm achieves its objective of PROFIT MAXIMIZATION. See AVERAGE REVENUE, ELASTICITY OF DEMAND, KINKED DEMAND CURVE, MONOPOLY.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005