Glossary · Micro · Perfect competition

Marginal revenue (MR)

The extra revenue from selling one more unit. For a price taker it equals the price. For a firm that must cut its price to sell more, it is less than the price, because the cut applies to every unit already being sold.

Also called: MR

Taught in: MR = MC Rule

Related terms

MR = MC ruleTotal revenue (TR)Price takerThe monopolist's demand and marginal revenue

More from perfect competition

Long-run competitive equilibriumMarket structurePerfect competitionShort-run supply curveShutdown rule

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