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Marginal revenue  (MR) - Financial definition

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Concise definition of the term marginal revenue

Marginal revenue is the change in total revenue caused by the sale of an additional unit of goods or services a company produces.

Comprehensive definition of the term marginal revenue

If a pencil producing company's total revenue increases from $750,000 to $750,005 for having sold an additional pencil, then the marginal revenue for that unit of goods would be $750,005 - $750,000 = $5.

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