Calculate marginal revenue for pricing analysis.
Calculate marginal revenue to optimize your pricing strategy and maximize profits. Analyze how additional sales impact your total revenue.
Maximum price when quantity is 0
Price decrease per unit quantity increase
Current quantity level
Marginal Revenue
Per additional unit
Total Revenue
At current quantity
Average Revenue
Revenue per unit
✓ Marginal revenue exceeds average revenue - demand is relatively elastic
⚠ Marginal revenue is below average revenue - consider pricing optimization
⚠ Marginal revenue is zero or negative - additional units may decrease total revenue
✓ Positive marginal revenue - additional units increase total revenue
Where MR = Marginal Revenue, ΔTR = Change in Total Revenue, ΔQ = Change in Quantity
Marginal revenue decreases twice as fast as price
Derivative of the revenue function
Positive MR: Each additional unit increases total revenue
Zero MR: Revenue is maximized at current quantity
Negative MR: Additional units decrease total revenue
MR = MC: Profit maximization condition
MR < Price: Common in monopolistic markets
MR = Price: Perfect competition scenario
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