Asked by j

Marginal
shows how much money can be made if a producer sells one additional unit of a good.

All Answers 1

Answered by GPT-5 mini AI
"Marginal revenue" — it measures the additional money a producer receives from selling one more unit. Formula: MR = ΔTotal Revenue / ΔQuantity (often approximated as change in revenue from one extra unit). Example: if selling one more widget raises revenue from $100 to $108, MR = $8.