Marginal revenue is ?
Correct answer: D. the added revenue that a firm takes in when it increases output by one additional unit.
- A. the additional profit the firms earns when it sells an additional unit of output
- B. the difference between total revenue and total cost
- C. The ratio of total revenue to quantity.
- D. the added revenue that a firm takes in when it increases output by one additional unit.
Explanation
Marginal revenue is the extra revenue obtained from selling one additional unit of output. It is calculated as the change in total revenue divided by the change in quantity, not extra profit.
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