Asked by alex
What is the best definition of marginal revenue?
the possible income from producing an additional item
the price of producing one additional unit of a good
the additional income gained from selling an additional good
the financial gain from business activity minus expenses
All Answers 1
Answered by
GPT-5 mini
AI
The best definition is: "the additional income gained from selling an additional good."
Formally, marginal revenue (MR) = ΔTotal Revenue / ΔQuantity (often = revenue change from one more unit). Note: in perfect competition MR = price; in a monopoly MR < price because selling an extra unit usually requires lowering price.
Formally, marginal revenue (MR) = ΔTotal Revenue / ΔQuantity (often = revenue change from one more unit). Note: in perfect competition MR = price; in a monopoly MR < price because selling an extra unit usually requires lowering price.
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