The change in revenue that occurs when one more unit of output is sold is referred to as:
A) marginal revenue.
B) average revenue.
C) total revenue.
D) erosion.
E) scenario revenue.

Question

Quizplus · Accepted Answer

The definition provided matches the concept of marginal revenue, which measures the incremental change in total revenue resulting from increasing output by one unit. Average revenue, on the other hand, is the total revenue divided by the number of units sold or the price per unit. Total revenue is the overall amount of money earned from sales, while erosion and scenario revenue are not recognized terms in economics.

The Change in Revenue That Occurs When One More Unit