Marginal revenue is the change in total revenue that results from a one-unit increase in the quantity sold. In other words, it reflects the additional revenue a firm earns by selling one more unit of a good. It is calculated by dividing the change in total revenue by the change in quantity sold.

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Marginal Revenue Is

Question 9

Multiple Choice

Marginal revenue is

A) the change in total quantity that results from a one-unit increase in the price of the good.
B) the change in total revenue that results from a one-unit increase in the quantity sold.
C) economic profit divided by the quantity sold.
D) the change in economic profit that results from a one-unit increase in the quantity sold.
E) total revenue minus total cost.

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