A farmers' market sells a bag of apples at a fixed price of $3.60. Which of the following is a term used by economists to describe the money received from the sale of an additional bag of apples?
A)Pure profit.
B)Gross earnings.
C)Marginal revenue.
D)Marginal costs.

Question

Quizplus · Accepted Answer

Marginal revenue refers to the money received from the sale of an additional unit of a product. In this case, it would be the money received from selling an additional bag of apples. Pure profit and gross earnings are not accurate terms in this context. Marginal costs refer to the additional costs incurred in producing an additional unit of a product.

A Farmers' Market Sells a Bag of Apples at a Fixed