Which of the following correctly defines marginal revenue?
A) Marginal revenue is the price at which the firm sells the last unit of the good.
B) Marginal revenue is the change in revenue from a unit increase in the price of the good.
C) Marginal revenue is the additional revenue from a unit increase in output and sales.
D) Marginal revenue is the additional revenue earned from an increase in demand for the good.
E) Marginal revenue is the difference between price and marginal cost for the last unit sold.

Question

Quizplus · Accepted Answer

Marginal revenue is defined as the additional revenue that a firm receives from selling one more unit of a good or service. It is calculated as the change in total revenue divided by the change in quantity sold. Choices A, B, D, and E do not accurately describe this concept.

Which of the Following Correctly Defines Marginal Revenue