Marginal revenue is
A) equal to total revenue in monopoly industries.
B) equal to the change in total revenue derived from the sale of one additional unit.
C) always increasing for a monopoly.
D) equal to the market price in monopoly industries.

Question

Quizplus · Accepted Answer

Marginal revenue is defined as the change in total revenue that results from the sale of one additional unit of a product. It is a key concept in microeconomics, used to determine the optimal level of output for a firm. Choices A, C, and D are incorrect descriptions of marginal revenue.

Marginal Revenue Is