# What is the mathematical formula for how marginal revenue changes with quantity sold?

##### 1 Answer

Note in practice quantity increments in discrete numbers so:

In real life here is what you may see:

- Total Revenue = (Current Price Per Product) x (Current Number Products Sold)

#=>TR_1 = P_1xxQ_1# - Consider lower Alternate Price and determine Alternate Number Products Sold at this price. This step may require specific market analysis.
- Alt Revenue = (Alt Price) x (Alternative Products Sold)
#=>TR_2 = P_2xxQ_2# - Marginal Revenue,
#MR = |(TR_1-TR_2)/(Q_1 - Q_2)|#

#### Explanation:

The total revenue (TR) received from the sale of Q goods at price P is given by

Marginal revenue is the derivative of total revenue with respect to demand.