Marginal+Revenue

Marginal Revenue  Marginal Revenue is the derivative of the total revenue. This means that it is the total revenue over the change in quantity. In other words, this is the instantaneous slope of the total revenue curve at a certain point; since the total revenue is an upside down U-shaped curve, this means that the slope at any point is the marginal revenue, because the slope is constant. Conceptually marginal revenue is the price and the demand. Graphically this is the line that crosses through the point at which the ATC curve crosses the MC curve (this is the absolute minimum point of the ATC curve, only in the long run within perfect competition).



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 Question of Knowledge:  Graphically, which lines does Marginal Revenue cross?  a. Demand & Price  b. Marginal Cost & Average Total Cost  c. Just Average Total Cost  d. Average Total Cost & Demand

 Answer: <span style="color: #000000; font-family: Arial,Helvetica,sans-serif;"> b.