Marginal profit
The marginal benefit is in the business administration the profit of which for a ( infinitesimally a little) more unit produced product is to be expected.
The marginal profit results from the derivation of the profit function : f (x) = sales function - cost function
It should be noted here that it is a function. Therefore, all possible production quantities for x can be used in the marginal profit function, and one always receives the respective additional profit at the corresponding production level.
It is important to know about the marginal profit in order to be able to carry out a product calculation. The investigation of the facts may help you decide how many units of a product must be sold to the break-even point ( break-even point to reach).
Marginal profit can also play an important role in calculating a company's output and price . If the total cost function is missing, the profit function is compiled from revenue and the transformed production function and the first derivation is made from this - the marginal profit . This method is suitable in terms of traceability and clarity compared to the marginal revenue method. The costs are included more directly.