The marginal profit describes the profit that can be expected for an additional (infinitely small) manufactured product unit.

The marginal profit is calculated using the following derived profit function:

f (x) = sales function - cost function

Any conceivable production quantity for the value x can be inserted into the function of the marginal profit and one always receives the additional profit to be calculated at a corresponding level of production.

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## Importance of marginal profit

With the help of the marginal profit, a product calculation can be carried out. Such an investigation can provide information about how large the quantity of product units sold must be in order for the break-even point to be reached. Marginal profit can also help determine the output and price of companies.

## Summary

- Marginal profit describes the profit that can be expected for an additional quantity of a product produced
- Profit function: f (x) = sales function - cost function