2
QuizMultiple Choice

Profit

Question 2 • 2102320-Economics HONORS - Edgenuity Teacher

What is the best definition of marginal revenue?

Answer
A
the possible income from producing an additional item
B
the price of producing one additional unit of a good
C
the additional income gained from selling an additional good
D
the financial gain from business activity minus expenses

Explanation

Marginal revenue is the additional revenue a business receives when it sells one more unit. For example, if selling one extra item increases revenue by $10, marginal revenue is $10. Choice C, “the additional income gained from selling an additional good,” gives this definition.

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