Marginal revenue (mr), Managerial Economics

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Marginal Revenue (MR)

This is the increase in Total Revenue resulting from the sale of an extra unit of output.  Thus, if TRn-1 is Total Revenue from the sale of (n-1) units and TRn is total revenue from the sale of n units, then the marginal revenue of the nth unit is given as:

dTR = P(1 - 1/Ed)   or   TRn - TRn - 1

dQ


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