Marginal Profit | Concept

Ole Ersoy
Sep - 20  -  1 min

The Marginal Profit is the profit gained from stocking one additional unit.

Example

Profit at a stocking level of 10 units and a fixed demand level is $2000,000.

Profit at a stocking level of 11 units and a fixed demand level is $2300,000.

The Marginal Profit is $300,000.