234k views
16 votes
Why is marginal revenue more important than the average revenue?

User Ameet
by
8.2k points

1 Answer

9 votes

Answer:

it measures increases in revenue from selling more products and services

Step-by-step explanation:

Marginal revenue follows the law of diminishing returns, which states that any increases in production will result in smaller increases in output.

User Rudy Lattae
by
8.1k points

No related questions found