For any firm operating in any market structure, marginal revenue is defined as
A) price times quantity of the product sold.
B) the total amount received by the seller from the sale of a product.
C) total revenue divided by the number of units sold.
D) the change in price resulting from the sale of an additional unit of the product.
E) the change in total revenue resulting from the sale of an additional unit of the product.

Question

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue resulting from the sale of an additional unit of the product. This means that as a firm sells more units of its product, the marginal revenue will show how much additional revenue is earned from each additional unit sold.

For Any Firm Operating in Any Market Structure, Marginal Revenue