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Question
Define marginal revenue.
Definition
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Solution 1
Marginal revenue is the additional revenue earned from the sale of the additional unit of output.
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Solution 2
Marginal revenue is the change in total revenue that results from the sale of one more or one less unit of output. Therefore
`MR = (ΔTR)/(ΔQ) or MR = TR_n - TR_(n-1)`
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Chapter 22: Model Short Answer Questions - MODEL SHORT ANSWER QUESTIONS [Page 468]
