Marginal Revenue and the Demand Curve

By Jodi Beggs, About.com Guide

Marginal revenue, simply put, is the additional revenue that a producer receives from selling one more unit of the good that he produces. Because profit maximization happens at the quantity where marginal revenue equals marginal cost, it's important to not only understand how to calculate marginal revenue but also how to represent marginal revenue graphically.

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• What Is Marginal Revenue?
• The Demand Curve
• The Marginal Revenue Curve versus the Demand Curve
• The Algebra of Marginal Revenue
• Marginal Revenue is the Derivative of Total Revenue
• The Marginal Revenue Curve versus the Demand Curve
• The Marginal Revenue Curve versus the Demand Curve
• A Special Case of the Demand and Marginal Revenue Curves

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