marginal profit

  

Definition

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.


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