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Glossary > Marginal Revenue

Marginal Revenue

Marginal revenue is the change in total revenue that results from selling one additional unit of a good or service. In other words, it represents the additional revenue a company earns by selling one more unit of a product, with all other revenue-impacting factors staying constant.

It is typically used in economics and business to evaluate the profitability of different production and pricing strategies.

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Similar Terms:

Average Revenue Per User (ARPU)
Contracted Annual Recurring Revenue (CARR)
Monthly Recurring Revenue (MRR)
Net Revenue Retention (NRR)

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