A grocery store sells a bag of potatoes at a fixed price of $2.30.Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?
A)Marginal revenue
B)Gross earnings
C)Pure profit
D)Marginal costs

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue earned from selling one more unit of a product. In this case, selling one more bag of potatoes will earn the store an additional $2.30, making it the correct term used by economists. Gross earnings refers to the total revenue earned, not just the additional revenue, while pure profit takes into account all costs and expenses, not just the revenue from one bag of potatoes. Marginal costs refer to the additional cost incurred in producing one more unit of a product, which is not relevant to this scenario.

A Grocery Store Sells a Bag of Potatoes at a Fixed