Marginal Revenue Calculator

Calculate Marginal Revenue



Formula

The formula to calculate the Marginal Revenue (MR) is:

\[ MR = \frac{CTR}{CIQ} \]

Where:

What is Marginal Revenue?

Marginal revenue is the per-unit value increase from selling an additional unit in the business. In other words, if your revenue increases and your number of units sold also increases, then the marginal revenue will be the per-unit increase. This concept is crucial in understanding how changes in sales volume affect overall revenue.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Marginal Revenue:

\[ MR = \frac{1000}{50} = 20 \]

The Marginal Revenue is $20 per unit.