A grocery store sells a bag of potatoes at a fixed price of $2.30.Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?
A) Marginal revenue
B) Gross earnings
C) Pure profit
D) Marginal cost

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue received from selling one more unit of a good. In this case, selling an additional bag of potatoes will result in an increase in revenue by $2.30, making marginal revenue the correct term to describe the money received. Gross earnings is the total amount earned from sales and does not account for additional units sold. Pure profit is the total revenue minus total costs and is not specific to the sale of an additional bag of potatoes. Marginal cost is the additional cost of producing one more unit of a good, which is not relevant to the sale of an already produced bag of potatoes.

A Grocery Store Sells a Bag of Potatoes at a Fixed