How To Work Out Marginal Revenue?

Start with total revenue

Calculate the change in total revenue

Calculate the change in quantity sold

Divide the change in total revenue by the change in quantity sold

Use the formula: Marginal Revenue = Change in Total Revenue / Change in Quantity

For a single additional unit, compare revenue before and after selling that unit

If price changes with quantity, use the revenue from the extra unit, not the original price

If total revenue is given by a function, take the derivative with respect to quantity

Check units to ensure the result is revenue per unit

Interpret the result as the extra revenue from selling one more unit

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