The revenue gained by producing one additional unit of a product or service.
the marginal revenue of carrying an individual passenger far exceeded marginal cost
Example sentencesExamples
The opposite extreme in a market is monopoly, where one firm maximizes profits by exploiting the marginal revenue derived from demand.
The marginal revenue from lowering the price to grab additional Canadian customers would quickly be more than cancelled by the lost revenue due to Americans paying lower prices.
If marginal cost falls, a profit-maximizing firm will expand output, so that marginal revenue falls as well.
He was the sole price setter, free to set marginal revenue equal to marginal cost, and free to set price far above marginal cost.
In a commodity system such as the beef industry, the unit price of the output is equivalent to marginal revenue.
Definition of marginal revenue in US English:
marginal revenue
noun
Economics
The revenue gained by producing one additional unit of a good or service.
the marginal revenue of carrying an individual passenger far exceeded marginal cost
Example sentencesExamples
He was the sole price setter, free to set marginal revenue equal to marginal cost, and free to set price far above marginal cost.
The marginal revenue from lowering the price to grab additional Canadian customers would quickly be more than cancelled by the lost revenue due to Americans paying lower prices.
In a commodity system such as the beef industry, the unit price of the output is equivalent to marginal revenue.
If marginal cost falls, a profit-maximizing firm will expand output, so that marginal revenue falls as well.
The opposite extreme in a market is monopoly, where one firm maximizes profits by exploiting the marginal revenue derived from demand.