What is the term for the increase in a firm's total revenue which results from the use of one more unit of input?
A)Marginal profit.
B)Marginal revenue.
C)Marginal revenue product.
D)Marginal product.

Question

Quizplus · Accepted Answer

The term for the increase in a firm's total revenue which results from the use of one more unit of input is known as marginal revenue product. It is calculated by multiplying the change in quantity of output produced by the change in input with the marginal revenue.

What Is the Term for the Increase in a Firm's