Marginal Revenue and Formula


marginal revenue
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Marginal Benefit

First of all marginal benefit, A change in the quantity demanded of a good or service is called a change in the quantity demanded of a good or service. The concept of marginal utility is based on the principle that the benefit from the additional unit of a consumer is inversely proportional to the total quantity of that good.

Marginal Revenue

Secondly, if the firm sells more units, the change in total revenue means the change in total revenue, and Q means the change in sales quantity, marginal revenue (Mr) formula;

Mr = TR / Q.

Marginal Cost

Thirdly, The total cost of the unit that is using for an additional factor that has an impact, the change in total cost TC Q factor to express the change in cost marginal cost (MC) is the formula;

MC = TC / Q

Marginal Revenue and Formula

Marginal Substitution Rate

The relationship between the quantity demanded of A good and the quantity demanded of another good, as well as the quantity demanded of the other good, in order to maintain the same level of satisfaction, when the consumer is making different combinations of two different goods, such as A and B.the relationship between the quantity demanded of A good and the quantity The consumer satisfaction level to maintain the same amount of goods  ∆B is up, while consumption goods.  ∆ increases if the marginal rate of substitution;

MIO = ∆B / ∆A is.

Marginal substitution rate is equal to the slope of the indifference curve of the consumer.

Marginal Technical Substitution Rate

In order to maintain the same level of production, in brief, the decrease in production factor using for (∆Y) is the ratio of the increase in production factor using for (∆X) to the ratio of the increase in production factor using for (∆X).

MTIO = ∆Y / ∆ X

If y means capital Factor, X means labor factor;

MTO = the amount of decrease in capital / the amount of increase in labor.

The marginal technical substitution rate is equal to the slope of the marginal product curve.

Marginal Product

The last term Marginal product (MP) is a measure of the quantity demanding of a good or service.;

MP = ∆Q / ∆ X

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