Marginal revenue is defined as
A)the change in total revenue from a unit change in price.
B)the change in average revenue from a one-unit change in output.
C)the change in total revenue from a one-unit change in output.
D)the change total cost from a one-unit change in output.

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue that is earned when one more unit is sold. Therefore, it is calculated as the change in total revenue due to a change in output, which is represented by a one-unit change in output. Thus, option C is the correct answer.

Marginal Revenue Is Defined as