Marginal revenue is the ________ when output is __________?
Correct answer: B. Change in total revenue, increase by one unit
- A. Change in average revenue, increased
- B. Change in total revenue, increase by one unit
- C. change in average revenue, increased by one unit
- D. change in total revenue increased
Explanation
Marginal revenue is the change in total revenue caused by selling one additional unit of output. It is not the change in average revenue, which makes option b the relevant definition despite its grammatical wording.
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