Marginal profit

In microeconomics, marginal profit is the difference between the marginal revenue and the marginal cost. Under the marginal approach to profit maximization, to maximize profits, a firm should continue to produce a good or service up to the point where marginal profit is zero.

Marginal profit is the difference between a firm's marginal revenue (MR) and marginal cost (MC)

The most simple formula of Marginal profit is: Marginal revenue - Marginal cost. The derivate of the profit f(x) is in fact MP. In other words: p(x)=R(x)-C(x).

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