marginal revenue investment & finance definition
The
change in revenue that can be attributed to the sale of an additional unit of
output. When mar-ginal revenue exceeds marginal costs, it is profitable to
produce and sell an additional unit.
See marginal revenue in Wall Street Words
The extra revenue generated by selling one additional unit of a good or service. For example, if a firm can sell 10 units of a product at a price of $25 per unit, total revenue is $250. If, in order to sell 11 units, it must reduce the price to $24, total revenue rises to 11 × $24, or $264. Thus, the marginal revenue of the 11th unit is $264 - $250, or $14.
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