Marginal revenue is the addition to a firm's revenue from
A)a $1 change in price.
B)a one-unit change in output.
C)the sale of inferior output.
D)a $1 reduction in marginal cost.

Question

Quizplus · Accepted Answer

Marginal revenue is the change in revenue resulting from a one-unit change in output. Therefore, choice B is the correct answer. Choices A, C, and D are incorrect because they do not accurately represent the concept of marginal revenue.

Marginal Revenue Is the Addition to a Firm's Revenue from