If a firm's demand is subject to random fluctuations, the firm's ________ will also be random.

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Marginal revenue will also vary if a firm's demand is subject to random fluctuations. Marginal revenue is the change in revenue resulting from a one-unit change in output, and if demand is fluctuating randomly, the revenue generated by each unit of output will also vary randomly. Average variable cost and average total cost are based on fixed costs and variable costs, which are not affected by changes in demand. Marginal cost may vary with changes in output, but it is not directly affected by fluctuations in demand.

If a Firm's Demand Is Subject to Random Fluctuations, the Firm's