The change in a firm's total revenue due to selling an additional unit of output is known as

Question

Quizplus · Accepted Answer

The change in total revenue due to selling an additional unit of output is defined as marginal revenue. Marginal revenue is the additional revenue generated by selling one more unit of output, and it is calculated as the change in total revenue over the change in quantity sold. Therefore, option A is the correct answer. Option B refers to the revenue earned per unit sold, option C refers to the amount charged for a unit of output, option D is the additional cost incurred for producing an additional unit of output, and option E is the additional revenue generated by using one more unit of input.

The Change in a Firm's Total Revenue Due to Selling