Compare marginal revenue, marginal cost, and marginal revenue product.
The concepts of marginal revenue, marginal cost and the marginal revenue product are used by the producer while producing an output. With the help of cost, the producer finalises the amount of price of the product and thus, can earn revenue after that.
Marginal revenue is the amount which a producer earns by selling one additional output or unit out of the total output. It is an addition which is made by the producer until total revenue.
In contrast, the marginal cost is that cost which a producer incurs to producer an additional output out of the total output. Cost is which a producer incurs whereas revenue is what a producer pays.
A marginal revenue product is that amount which a producer gets by selling the add on units. It shows the additional revenue which has been generated by utilizing or using one or more than one unit.
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