Marginal revenue
A) generally rises as output increases.
B) exceeds price under conditions of monopoly.
C) is the addition to total revenue from the sale of one more unit.
D) coincides with marginal cost at each level of output.
E) is another name for profit.

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue earned from the sale of one additional unit. It may or may not increase as output increases, and it does not necessarily coincide with marginal cost. Marginal revenue is also not the same as profit, which is the difference between total revenue and total cost. In a monopoly market, marginal revenue exceeds price because the monopolist has some control over the price they charge.

Marginal Revenue