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.


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.

    Was this Helpful?   (25)   (0)
  • 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.

    Was this Helpful?   (25)   (0)
  • By hiring a tenth worker the company achieved a marginal profit that was equal to marginal cost, meaning that they maximized their profits.

    Was this Helpful?   (25)   (0)
Show more usage examples...

Related Videos




http://www.businessdictionary.com/definition/marginal-profit.html

Have a question about marginal profit? Ask for help in the
Community
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z