This marginal revenue calculator takes the figures you already have and applies the relationship behind marginal revenue calculations for you, giving change in total revenue, change in quantity and marginal revenue from final quantity, final revenue, initial quantity and initial revenue.
What Is the Marginal Revenue Calculator?
The marginal revenue calculator takes final quantity, final revenue, initial quantity and initial revenue and turns them into change in total revenue, change in quantity and marginal revenue.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Marginal Revenue Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with final quantity set to 10, final revenue set to 5, initial quantity set to 2, the calculator returns change in total revenue of -95, and change in quantity of 8, and marginal revenue of -11.87. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out change in total revenue?
Enter final quantity, final revenue, initial quantity and initial revenue. The calculator then works through the relationship and reports change in total revenue, change in quantity and marginal revenue.
What does the marginal revenue actually calculate?
It takes final quantity, final revenue, initial quantity and initial revenue and converts them into change in total revenue, change in quantity and marginal revenue using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter final quantity?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.
Is the answer exact?
It is as exact as the formula and the inputs allow. The method itself is the standard one for this problem, so the only sources of error are the figures you enter and the precision you ask for.