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Investments glossary

Marginal Revenue (MR)


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Quotes of the day:

Truth may be stretched, but cannot be broken, and always gets above falsehood, as oil does above water.

— Miguel de Cervantes

Marginal revenue is the increase in revenue that results from the sale of one additional unit of output. While marginal revenue can remain constant over a certain level of output, it follows the law of diminishing returns and will eventually slow down as the output level increases. Perfectly competitive firms continue producing output until marginal revenue equals marginal cost.


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