The revenue associated with one additional unit of production. Whether this is higher, lower or the same as the revenue from the previous unit of production depends on the demand for the producer's product. In the case of a producer who supplies a very small percentage of the market, an extra unit of production is unlikely to have an effect on market prices. In this case, increased production will not affect marginal revenue. On the other hand, if the producers supplies most or all of the market (such as in a monopoly or near-monopoly), then increased production is likely to reduce marginal revenue.
Related information about marginal revenue:
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In microeconomics, marginal revenue (R') is the additional revenue that will be generated by increasing product sales by 1 unit. It can also be described as the ...
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The increase in revenue that results from the sale of one additional unit of output. Marginal revenue is calculated by dividing the change in total revenue by the ...
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From total revenue, we can obtain another key concept: marginal revenue. Marginal revenue is the additional revenue added by an additional unit of output, ...
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Thinking about a rational quantity of juice to produce.
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