The additional revenue a firm receives as a result of selling an additional unit of output is called

Question

Quizplus · Accepted Answer

The additional revenue a firm receives from selling an additional unit of output is called marginal revenue. It is different from total revenue, which is the revenue earned from the sale of all units of output. Profit is the difference between revenue and costs, and price is the amount customers pay for each unit of output. Marginal revenue product is the additional revenue generated by an additional unit of input, such as labor or capital, rather than output. Therefore, the correct answer is D) Marginal revenue.

The Additional Revenue a Firm Receives as a Result of Selling