Marginal Revenue Product - MRP

finance a la Shmoop what is marginal revenue well it's that last dollar the [money racing to the finish line]

last sale of a Sunday at baskin-robbins before the year closes at midnight on [ice cream sale]

New Year's Eve it's that last flying car sale

you made it at 11:58 p.m. as the ball was dropping in Manhattan sold it for a [ball floating in space]

hundred grand even felt different from the first car you sold this year why

well because from an accounting perspective it had already been built

shipped Frette painted with that new flying car smell smell yeah and the [flying with air freshener]

revenue had generated was likely meaningfully more profitable or at least

from an accounting perspective then the first car sold why well because so many

of its costs had already been accounted for or paid for or amortized on the [clip board check list]

books that factory that stamped out its last product for the year already had a

year's worth of high use behind it amer tizen the cost of the factory and

everything that went into winning that last marginal dollar of revenue so that

from an accounting perspective to make the first sale of that flying tesla for

a hundred grand well that cost a lawn and company like a billion dollars to

make the millionth test and sell it for a hundred grand well as it was

completely made by the robots a you know cost Elon in company only about 20 grand

like way higher profit margins the key concept to worry about when you think

about marginal revenues is the marginal contribution to profits which that last

dollar brings to the bottom line party anyway we hope you got something out of [dollars meeting together]

this video it's probably one of the last ones not to be made by robots least

around here