Advertisements
Advertisements
Question
What is marginal revenue?
Very Short Answer
Advertisements
Solution 1
Marginal revenue is defined as the addition to total revenue which results from the sale of one additional unit of the product (output).
shaalaa.com
Solution 2
Marginal revenue is the change in total revenue which results from the sale of one more or one less unit of output. Therefore
`MR = (ΔTR)/(ΔQ) or MR = TR_n - TR_(n-1)`
shaalaa.com
Is there an error in this question or solution?
Chapter 8: Cost and Revenue Analysis - TEST YOURSELF QUESTIONS [Page 163]
