What is a Marginal Revenue?

Marginal Revenue refers to the increased revenue from increasing the sales of a unit of product, that is, the revenue from the sale of the last unit of product. It can be positive or negative. Marginal revenue is an important concept in firm analysis. A necessary condition for profit maximization is that the marginal benefit is equal to the marginal cost. At this time, the marginal profit is equal to zero, and the profit is maximized. Under perfect competition, any manufacturer's output change will not affect the price level. Demand elasticity is unlimited for individual manufacturers. Total revenue increases in proportion to the increase in sales. Marginal revenue equals average revenue and equals price.

Marginal revenue

Formula: MR = TR / Q

Marginal Revenue =

This part of the income can be used to compensate for production

The income is too low, which is the major problem of China's "three rural" issues

Increasing marginal income refers to: In a knowledge-dependent economy, as the input of knowledge and technology elements increases, the more output is produced, the producer's income is increasing. This law is based on the background of the knowledge economy. Factors of production in the economy are reduced to knowledge inputs and other material inputs. The specific expression is shown in the following figure: