A restaurant sells a large lemonade at a fixed price of $2.59. A term used by economists to describe the money received from the sale of an additional lemonade is:
A)gross earnings.
B)marginal revenue.
C)pure profit.
D)net benefit.

Question

Quizplus · Accepted Answer

Marginal revenue refers to the revenue generated by selling one more unit of a good or service. In this case, the additional revenue generated by selling one more large lemonade would also be $2.59, as the price is fixed. Therefore, the correct term to describe the money received from the sale of an additional lemonade is marginal revenue.

A Restaurant Sells a Large Lemonade at a Fixed Price