{
  "id": "marginal-revenue",
  "version": "4606ceb42166",
  "status": "published",
  "name": "Marginal Revenue Calculator",
  "question": "What is marginal revenue?",
  "summary": "Computes marginal revenue, the extra revenue from each extra unit sold, from the total revenue or the price at two quantities.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/marginal-revenue-calculator",
  "markdown": "https://www.acalculator.org/finance/marginal-revenue-calculator.md",
  "kind": "function",
  "method": "Marginal revenue = (TR₂ − TR₁) ÷ (Q₂ − Q₁), where TR is total revenue at quantity Q; from prices, TR = price × Q.",
  "assumptions": [
    "Marginal revenue is the average over the change in quantity: for a change of more than 1 unit it is revenue per extra unit.",
    "Arithmetic is exact on the typed decimals; money shows to the cent, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "from": {
        "title": "I know the",
        "description": "Whether you know the total revenue or the price at each quantity.",
        "type": "string",
        "enum": [
          "revenue",
          "price"
        ]
      },
      "q1": {
        "title": "Starting quantity",
        "description": "Units sold.",
        "type": "number",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "r1": {
        "title": "Total revenue at the start",
        "description": "Revenue from the starting quantity.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "p1": {
        "title": "Price at the start",
        "description": "The price per unit at the starting quantity.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "q2": {
        "title": "New quantity",
        "description": "Units sold.",
        "type": "number",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "r2": {
        "title": "Total revenue at the new quantity",
        "description": "Revenue from the new quantity.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "p2": {
        "title": "Price at the new quantity",
        "description": "The price per unit at the new quantity.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      }
    }
  },
  "outputs": {
    "mr": {
      "label": "Marginal revenue",
      "description": "Change in total revenue ÷ change in quantity: revenue per extra unit.",
      "format": "money"
    },
    "dRevenue": {
      "label": "Change in total revenue",
      "description": "New total revenue − starting total revenue.",
      "format": "money"
    },
    "dQuantity": {
      "label": "Change in quantity",
      "description": "New quantity − starting quantity.",
      "format": "number"
    },
    "revenue1": {
      "label": "Starting total revenue",
      "description": "Price × quantity at the start.",
      "format": "money"
    },
    "revenue2": {
      "label": "New total revenue",
      "description": "Price × quantity at the new quantity.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "from": "revenue",
      "q1": 1,
      "r1": 1200,
      "p1": 1200,
      "q2": 2,
      "r2": 2200,
      "p2": 1100
    },
    "outputs": {
      "mr": 1000,
      "dRevenue": 1000,
      "dQuantity": 1,
      "revenue1": 1200,
      "revenue2": 2200
    },
    "text": "Going from $1,200.00 to $2,200.00 of revenue is a marginal revenue of $1,000.00 per unit."
  },
  "examples": [
    {
      "given": {
        "from": "revenue",
        "q1": 1,
        "r1": 1200,
        "q2": 2,
        "r2": 2200
      },
      "expect": {
        "mr": 1000
      },
      "source": "OpenStax, Principles of Economics 3e, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price, Table 9.3 (HealthPill: marginal revenue = change in total revenue ÷ change in quantity). https://openstax.org/books/principles-economics-3e/pages/9-2-how-a-profit-maximizing-monopoly-chooses-output-and-price: (2,200 − 1,200) ÷ (2 − 1) = 1,000"
    },
    {
      "given": {
        "from": "price",
        "q1": 4,
        "p1": 900,
        "q2": 5,
        "p2": 800
      },
      "expect": {
        "mr": 400,
        "revenue1": 3600,
        "revenue2": 4000
      },
      "source": "OpenStax, Principles of Economics 3e, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price, Table 9.3 (HealthPill: marginal revenue = change in total revenue ÷ change in quantity). https://openstax.org/books/principles-economics-3e/pages/9-2-how-a-profit-maximizing-monopoly-chooses-output-and-price: 5 × 800 − 4 × 900 = 400; ÷ 1 = 400"
    },
    {
      "given": {
        "from": "price",
        "q1": 7,
        "p1": 600,
        "q2": 8,
        "p2": 500
      },
      "expect": {
        "mr": -200
      },
      "source": "OpenStax, Principles of Economics 3e, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price, Table 9.3 (HealthPill: marginal revenue = change in total revenue ÷ change in quantity). https://openstax.org/books/principles-economics-3e/pages/9-2-how-a-profit-maximizing-monopoly-chooses-output-and-price: 8 × 500 − 7 × 600 = 4,000 − 4,200 = −200"
    },
    {
      "given": {
        "from": "revenue",
        "q1": 100,
        "r1": 5000,
        "q2": 130,
        "r2": 6125
      },
      "expect": {
        "mr": 37.5,
        "dQuantity": 30
      },
      "source": "hand calculation in content.mdx: (6,125 − 5,000) ÷ (130 − 100) = 1,125 ÷ 30 = 37.50"
    }
  ],
  "sources": [
    "OpenStax, Principles of Economics 3e, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price: marginal revenue is the change in total revenue divided by the change in quantity; Table 9.3 (HealthPill) gives price, total revenue and marginal revenue at 1 to 8 units. https://openstax.org/books/principles-economics-3e/pages/9-2-how-a-profit-maximizing-monopoly-chooses-output-and-price (retrieved 2026-10-05)"
  ],
  "related": [
    "marginal-cost",
    "revenue",
    "price-elasticity-of-demand",
    "profit"
  ],
  "changelog": []
}