Marginal profit

Marginal profit

In microeconomics, marginal profit is the term used to refer to the difference between the marginal cost and the marginal revenue for producing one additional unit of production. Under the marginal approach to profit maximization, to maximize profits, a firm should continue to produce a good or service until marginal profit is zero.

Marginal profit is the difference between a firm's marginal revenue (MR) and marginal cost(MC)

Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • marginal profit — additional profit, money earned in a roundabout manner …   English contemporary dictionary

  • Profit maximization — In economics, profit maximization is the process by which a firm determines the price and output level that returns the greatest profit. There are several approaches to this problem. The total revenue total cost method relies on the fact that… …   Wikipedia

  • Marginal product of labor — In economics, the marginal product of labor also known as MPL or MPN is the change in output from hiring one additional unit of labor. It is the increase in output added by the last unit of labor.[1] Ceteris paribus that no other inputs to… …   Wikipedia

  • marginal —    is unobjectionable when used to describe something falling near a lower limit ( a marginal profit ). But it is a lame choice when all you mean is small or slight, as was the case here: There has been a marginal improvement in relations between …   Dictionary of troublesome word

  • marginal —  is unobjectionable when used to describe something falling near a lower limit ( a marginal profit ). But it is a lame choice when all you mean is small or slight …   Bryson’s dictionary for writers and editors

  • marginal producer — ➔ producer * * * marginal producer UK US noun [C] ► ECONOMICS a company, country, etc. that produces a small amount of a product or crop with high production costs and little or no profit: »Political uncertainty in some of the world s largest… …   Financial and business terms

  • marginal costing — ➔ costing * * * marginal costing UK US noun [U] (also marginal pricing) ACCOUNTING ► a system for calculating the cost of a product where overheads (= costs not directly related to producing it) are not included, but are calculated separately:… …   Financial and business terms

  • marginal land — ➔ land1 * * * marginal land UK US noun [C] ► farming land that is of poor quality and does not produce much profit: »With rising prices for crops, marginal land is coming under pressure to be put back into cultivation …   Financial and business terms

  • marginal productivity — UK US noun [U] ► ECONOMICS, PRODUCTION the amount that can be produced by adding one unit of something, such as labour, to the production process, or the added profit that this produces: »Modern economists have approached with caution the idea… …   Financial and business terms

  • marginal utility — profit derived from each additional unit produced by a manufacturer (Economics) …   English contemporary dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”