Marginal Revenue

Marginal revenue is generated from the sale of one more additional item. It also refers to the value of the higher sales price related to beneficial business attributes that justify the additional charges.

Marginal Revenue in Business

Marginal Revenue

The scholarly definition and reality are two different perspectives. The student is taught that marginal revenue equals the additional dollars generated for an additional single unit of sales. It is literally taken right down to the micro measurement. This is simple to understand but in small business, the scope of its meaning and impact are substantial to the bottom line.

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