ShmoopTube

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

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

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

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

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

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well because from an accounting perspective it had already been built

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

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revenue had generated was likely meaningfully more profitable or at least

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

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

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

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

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

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

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

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

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

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

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

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

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

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around here

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