Marginal revenue

Marginal revenue is an important concept in microeconomics. Marginal revenue refers to the revenue that a company receives when it sells one additional unit of a product.

The marginal revenue depends on consumers demand for the product. A company wants to sell more units of a product if their marginal revenue is higher than their marginal cost. The price of a company's products and the quantity of their production will be at the price and the volume where the marginal revenue is equal to the marginal cost.