If marginal revenue is negative then the revenue lost from receiving a lower price on all the units that could have been sold at the original price is smaller than the additional revenue from selling one more unit of the good.

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If marginal revenue is negative, it means that the revenue from selling one more unit is less than the revenue from the previous unit sold. Therefore, selling one more unit would result in a decrease in total revenue. In this case, the revenue lost from receiving a lower price on all the units that could have been sold at the original price would be greater than the additional revenue from selling one more unit of the good.

If Marginal Revenue Is Negative Then the Revenue Lost from Receiving