Economics 101: Marginal Revenue | SterlingTerrell.net

Economics 101: Marginal Revenue

What is marginal revenue?

Marginal Revenue is the additional revenue that you get from selling one more unit of a good or service.

More firms in a competitive market, the marginal revenue is the same as the price, and also the same as the average revenue.

However, if a firm must lower prices to sell more units, the marginal revenue, the price of the good, and the average revenue will not all be the same.

Make sense?