Marginal revenue
What Marginal revenue means in Economics A-Level, as defined for AQA.
Definitions of Marginal revenue
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Reference: AQA
The revenue generated by an additional unit; if it exceeds marginal cost, producing an additional unit adds more to total revenue than to total cost.
The additional revenue generated from selling one extra unit of output, calculated as the change in total revenue divided by the change in quantity.
The additional revenue gained from selling one extra unit of output, calculated as the change in total revenue divided by the change in quantity.
The addition to total revenue from producing one more unit; where it exceeds marginal cost, producing one more unit increases overall profit.
Equal to price for a price taker, so that price equals both average revenue and marginal revenue.
The change in total revenue from selling one additional unit.
Topics that use Marginal revenue
- Marginal, average and total revenue (AQA A-Level)
- Perfect competition (AQA A-Level)
- The objectives of firms (AQA A-Level)
Related terms
- Average revenue
- Profit maximisation
- Revenue maximisation
- Allocative efficiency
- Barriers to entry
- Bounded rationality
- Business objectives
- Corporate governance
Using Marginal revenue in the exam
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