Marginal Revenue Definition In Your Own Words

Marginal revenue is the additional income generated from the sale of one more unit of a good or service.

Marginal revenue definition in your own words. Marginal revenue is the revenue sales revenue sales revenue is the income received by a company from its sales of goods or the provision of services. Marginal revenue mr of a firm refers to the revenue earned by selling an additional unit of the commodity. It can be calculated by comparing the total revenue generated from a given number of sales e g. The amount of money a company can make by selling one more unit of something.

In accounting the terms sales and revenue can be and often are used interchangeably to mean the same thing. Marginal revenue mr is the incremental gain produced by selling an additional unit. Marginal revenue definition. In other words the change in total revenue resulting from the sale of an additional unit is called marginal revenue.