Marginal revenue is the additional revenue gained by selling one more unit of that firm's good.

When marginal revenue is positive, a good is price elastic. When marginal revenue is negative, a good is said to be price inelastic.

  • In a perfectly competitive market, marginal revenue is a flat line on a graph of price vs. quantity
  • In monopolies, the marginal revenue curve is a linear, downward sloping line whose horizontal distance is half that of the total revenue curve.TWINs FTW 01:32, April 7, 2010 (UTC)

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