Description
Divide afterRevenue minus beforeRevenue by afterQuantity minus beforeQuantity.
An economic model term depends on the chosen price basis, quantities, reference period, and behavioral assumptions. A supplied arithmetic component does not establish a causal economic effect or a complete model equilibrium.
Divide afterRevenue minus beforeRevenue by afterQuantity minus beforeQuantity.
When to use this tool
Use Marginal Revenue Discrete Step when you need one explicitly defined economic accounting or model component.
How to use the tool and how it works
- Enter beforeRevenue, afterRevenue, beforeQuantity, afterQuantity. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read marginalRevenue. Use the output convention below.
Require nonnegative distinct beforeQuantity and afterQuantity. Divide afterRevenue minus beforeRevenue by afterQuantity minus beforeQuantity.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| beforeRevenue | Before Revenue | Required. Finite number. |
| afterRevenue | After Revenue | Required. Finite number. |
| beforeQuantity | Before Quantity | Required. Finite number; minimum 0. |
| afterQuantity | After Quantity | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| marginalRevenue | Marginal Revenue | Required. Finite number. |
{
"input": {
"beforeRevenue": 100,
"afterRevenue": 135,
"beforeQuantity": 10,
"afterQuantity": 15
},
"output": {
"marginalRevenue": 7
}
}Limitations and assumptions
- This is a discrete average slope in revenue per unit; decreasing quantities are allowed and no derivative limit or demand model is estimated.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Review the complete model, data definitions, and reference prices before interpreting the result.
References
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