Marginal revenue is the
A) ratio of total revenue to quantity.
B) difference between total revenue and total costs.
C) added revenue that a firm takes in when it increases output by one additional unit.
D) additional profit the firm earns when it sells an additional unit of output.

Question

Quizplus · Accepted Answer

Marginal revenue is defined as the additional revenue that a firm generates by selling one more unit of a product or service, which aligns with option C.

Marginal Revenue Is the