If total revenue increases when a company sells more units, then marginal revenue is also increased.
Marginal revenue is the increase in total revenue that produces from the sale of one additional unit of output. Marginal revenue is determined by dividing the change in total revenue by the change in quantity. If a firm sells one additional unit for $100, the marginal revenue of the firm is $100. So it is concluded that there exists a positive correlation between marginal revenue and total revenue; reflecting that when total revenue increases, marginal revenue is positive.
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