marginal profit
Definition
The amount by which marginal revenue, or the additional revenue produced by increasing output by a certain amount, exceeds the associated marginal cost. If the marginal profit is zero, then increasing output will not lead to an overall increase in revenue.
Use marginal profit in a sentence
“ After five years of toiling through being in the red their company was finally projecting a marginal profit this quarter. ”
“ The increased production at Acme wholesale was not recommended since it produce less than Marginal Profits so the production line was scaled back. ”
“ A successful Kickstarter campaign knows how many units they have to produce to ensure that marginal revenue exceeds marginal cost so that they can base their proposed funding and initial round of production off of this marginal profit equation. ”
