So, the basic formula for calculating marginal revenue is As a simplified example, let's say that Apple can sell 10 iPhones if it charges $700. If Apple decides to lower the price to $680, it can ...

You can plot your marginal revenue curve on the same graph as your demand curve. For 11 sales, the demand curve shows a price of $4.95 – but the marginal revenue from that 11th sale is $4.45.

Only in a perfectly competitive market will the marginal revenue equal the price of the product at all output levels. Perfectly competitive markets don't exist; they serve as a benchmark for ...

Marginal profit is calculated by taking the difference between marginal revenue and marginal cost. Marginal profit analysis is helpful because it can help determine whether to increase or decrease ...