Asked by Waqas Khokhar on Sep 23, 2024
Verified
Marginal revenue is_____________.
A) The cost of producing an additional unit of output
B) The total revenue gained from production
C) The revenue from selling an additional unit of output
D) none of the above
Marginal Revenue
The additional income earned from selling one more unit of a good or service.
Additional Unit
An extra item or piece beyond the current production or stock, often considered in decision-making regarding costs and prices.
- Comprehend the definition and criticality of marginal concepts in economics, including marginal revenue, marginal cost, and marginal benefit.
- Calculate marginal revenue and understand its role in production and pricing decisions.
Verified Answer
ZZ
Zhuoqun Zhuang4 days ago
Final Answer :
C
Explanation :
Marginal revenue is the revenue gained from selling an additional unit of output. It is the change in total revenue when one additional unit is produced and sold. Option A is referring to marginal cost, while option B is referring to total revenue, not marginal revenue. Option D is incorrect as one of the options must be correct.
Learning Objectives
- Comprehend the definition and criticality of marginal concepts in economics, including marginal revenue, marginal cost, and marginal benefit.
- Calculate marginal revenue and understand its role in production and pricing decisions.