The added revenue that a firm takes in when it increases output by one additional unit is ________ revenue.Group of answer choicestotalmarginalvariablefixed
Question
Solution
The added revenue that a firm takes in when it increases output by one additional unit is marginal revenue.
Marginal revenue is defined as the additional revenue gained from selling one more unit of a good or service. It is a key concept in economics as it helps firms make decisions about production levels, pricing, and overall market strategy. This term specifically refers to the change in total revenue that results from the sale of one additional unit, making it an essential factor in understanding how businesses operate in competitive markets.
In contrast, total revenue refers to the total amount of money generated by sales, variable revenue refers to costs that change with the level of output, and fixed revenue refers to costs that remain constant regardless of output. Thus, the correct answer is marginal revenue.
Similar Questions
The added revenue that a firm takes in when it increases output by one additional unit is ________ revenue.Group of answer choicestotalmarginalvariablefixed
Total Revenue = ________Question 4Answera.(Price per unit)(Quantity sold)b.Quantity solc.Price per unitd.(Price per unit)/(Quantity sold)
Firm's price multiplied by Quantity of output produced gives __.Multiple choice question.marginal revenuetotal revenueaverage revenuetotal profits
A firm's total output times the price at which it sells that output is:Question 8Select one:a.net revenue.b.total revenue.c.average revenue.d.marginal revenue.
Another term for factors of production isGroup of answer choicesoutputs.revenues.inputs.costs.profits.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.