marginal profit



The excess of marginal revenue over marginal cost. In the best-case scenario, marginal profit is equal to zero.

If, at a given output level marginal revenue is equal to the marginal cost (MR = MC), the marginal profit is zero. This is the most profitable rate of output because all opportunities to make marginal profit have been exhausted. If at an output level the marginal revenue is less than the marginal cost, there will be marginal loss and total profit will be reduced.

Use marginal profit in a sentence

  • We would receive a marginal profit, which was good because we had been doing bad lately as far as sales and revenue go.

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  • Marginal profit seems to be more and more prevalent today in the market as more and more people rely on brokers without doing their homework.

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  • By hiring a tenth worker the company achieved a marginal profit that was equal to marginal cost, meaning that they maximized their profits.

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