How do u find marginal revenue?
1 Answer
Oct 31, 2015
Marginal Revenue is the difference between present total revenue and the previous total revenue. It is an addition made to the total revenue.
Explanation:
Marginal Revenue is the additional revenue made to the total revenue from the sale of one more unit of a good.
When the sale increase from 2 units to 3 units. The TR increases from $.36 to $.48. The additional revenue made to the total revenue is $.12. MR of the 3rd unit is $.12.
The Formula to calculate MR is -
There is another formula also -
When the sales moves from 4 units to 5 units
MR of the 5th unit is