PRESENTATION OUTLINE
Marginal Revenue; The additional income from selling one more unit of a good.
If the firm has no control over the market price, marginal revenue equals the market price.
The unit revenue the last item sold has generated for the firm.
Example: Each beanbag sold at $24.00 increases the firm's total revenue by $24.00, so marginal revenue is $24.00.
Marginal revenue is calculated by dividing the change in total revenue by the change in output quantity.
