marginal revenue
(mar-gin-al-rev-e-nue)
5 syllables
Definition
noun. the additional income generated from the sale of one more unit of a good or service. it is calculated as the change in total revenue divided by the change in quantity sold.
Example Sentence
The business owner analyzed the marginal revenue to determine how much profit he would earn from selling one more product.
More Example Sentences
Understanding marginal revenue helps companies make better pricing and production decisions.
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marginal revenue
