Marginal Revenue
Definition
The extra revenue from selling one more unit. In perfect competition it equals price; for a monopolist it's below price.
Example
A monopolist must lower price to sell more, so marginal revenue is less than the price.
The extra revenue from selling one more unit. In perfect competition it equals price; for a monopolist it's below price.
A monopolist must lower price to sell more, so marginal revenue is less than the price.