Marginal revenue product

 

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Marginal revenue product

The additional revenue generated by the extra output from employing one more unit of a factor of production. In a competitive industry this equals the marginal value product, but with imperfect competition it is smaller, due to the implied price reduction. Determines factor prices in competitive factor markets.



Similar Matches

Marginal propensity to save

Marginal propensity to save

The fraction of a change in income (or perhaps disposable income) that is saved.


Marginal rate of substitution

Marginal rate of substitution

In a production function or a utility function, the ratio at which one argument (input) substitutes for another along an isoquant or indifference curve.


Marginal tax rate

Marginal tax rate

The tax rate that would have to be paid on any additional dollars of taxable income earned.


Marginal rate of transformation

Marginal rate of transformation

The increase in output of one good made possible by a one-unit decrease in the output of another, given the technology and factor endowments of a country; thus the absolute value of the slope of the transformation curve.


Marginal utility

Marginal utility

The change in total satisfaction as a result of consuming one additional unit of a specific good or service.


Further Suggestions

Marginal efficiency of capital
Marginal cost
Marginal value product
marginal tax rate
Marginal propensity to consume
Marginal product
Marginal
Marginal propensity
Marginal propensity to import
Marginal revenue
Value marginal product


 
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