Which of the following is NOT true about marginal revenue?
A) It is a firm's marginal benefit.
B) It is defined as the extra revenue generated by the production of one more unit.
C) It can be expressed mathematically as MR = [R(Q - ∆Q) - R(Q)]/∆Q.
D) It can be expressed mathematically as ∆R/∆Q.

Question

Quizplus · Accepted Answer

C) is incorrect because the correct formula for marginal revenue (MR) is MR = [R(Q + ∆Q) - R(Q)]/∆Q, which represents the change in revenue from producing one more unit, not R(Q - ∆Q) - R(Q).

Which of the Following Is NOT True About Marginal Revenue