An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?
A)marginal revenue
B)gross earnings
C)pure profit
D)marginal costs
E)net benefit

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue generated from selling one more unit of a product. In this case, selling an additional ream of paper will generate a fixed amount of $4.50, which is the marginal revenue. Gross earnings refer to the total revenue earned from all sales, pure profit refers to the profit earned after deducting all costs, and marginal costs refer to the additional cost incurred in producing one more unit. Net benefit is a broader term that includes both revenue and costs, and cannot be used to describe the money received from the sale of an additional ream of paper.

An Office Supply Store Sells a Ream of Printer Paper