The increase in total revenue when the quantity sold increases by a small amount, measured per unit of the increase in sales. If the seller is a price-taker, marginal revenue is equal to price. Where the seller faces a downward-sloping demand curve, where p is price and y is quantity sold, and the elasticity of demand is defined as εd = − (p/y)(dy/dp), marginal revenue is
Positive marginal revenue thus requires that εd > 1.