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Question
Net addition made to the total revenue by selling an extra unit of a commodity is ______.
Options
total revenue
marginal revenue
average revenue
marginal cost
MCQ
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Solution
Net addition made to the total revenue by selling an extra unit of a commodity is marginal revenue.
Explanation:
Marginal Revenue (MR) is the additional revenue a firm earns by selling one more unit of a good or service.
- Total Revenue is the total earnings from sales.
- Average Revenue is the revenue per unit sold.
- Marginal Revenue is the net addition to total revenue when one extra unit is sold.
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