Marginal revenue can be defined as the:
A) percent increase in total revenue resulting from a 1% increase in output.
B) increase in total revenue resulting from a 1-unit increase in output.
C) total revenue divided by output.
D) average revenue multiplied by output.
E) average revenue multiplied by output divided by 4.

Question

Quizplus · Accepted Answer

Marginal revenue is the increase in total revenue resulting from a 1-unit increase in output. It represents the revenue earned by selling one additional unit of output. Therefore, option B is the correct definition of marginal revenue.

Marginal Revenue Can Be Defined as The