What is profit marginal profit

Marginal profit refers to the change in total profit amount caused by increasing or decreasing one unit of output at a certain level of output. The so-called output of a unit can be a product, a batch of products or an order, or it can be a production process, a work class or a department's output. Through the study of marginal profit, it can be judged whether the increase or decrease of production is economically cost-effective.

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