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How does the marginal revenue of digital currencies relate to their price?

avatarSimon ElijahDec 25, 2021 · 3 years ago1 answers

Can you explain the relationship between the marginal revenue of digital currencies and their price? How does the marginal revenue affect the price of digital currencies?

How does the marginal revenue of digital currencies relate to their price?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    As an expert in the field of digital currencies, I can tell you that the marginal revenue of digital currencies plays a significant role in determining their price. The marginal revenue refers to the additional revenue generated by selling one more unit of the currency. When the marginal revenue of a digital currency increases, it indicates a higher demand or a decrease in supply, which can lead to an increase in its price. Conversely, a decrease in marginal revenue may indicate a decrease in demand or an increase in supply, which can result in a price decline. Therefore, monitoring the marginal revenue of digital currencies is essential for understanding their price movements and making informed investment decisions.