Marginal Net Profit | Concept

Ole Ersoy
Sep - 20  -  1 min

The Marginal Net Profit is the net profit gained from stocking 1 additional unit.

Example

Net profit at a stocking level of 10 units and a fixed demand level is $3000,000.

Net profit at a stocking level of 11 units and the net profit at that stocking level and fixed demand level is expected to be $3400,000.

The Marginal Net Profit is $400,000.