ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the possible income from producing an additional item
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the price of producing one additional unit of a good
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the additional income gained from selling an additional good
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the financial gain from business activity minus expenses
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Detailed explanation-1: -What Is Marginal Revenue? Marginal revenue is the increase in revenue that results from the sale of one additional unit of output. While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will eventually slow down as the output level increases.
Detailed explanation-2: -It is calculated by multiplying the total amount of goods and services sold by the price of the goods and services. Marginal revenue is directly related to total revenue because it measures the increase in total revenue from selling one additional unit of a good or service.
Detailed explanation-3: -Marginal profit is the profit earned by a firm or individual when one additional or marginal unit is produced and sold. Marginal refers to the added cost or profit earned with producing the next unit.
Detailed explanation-4: -To calculate marginal revenue, you take the total change in revenue and then divide that by the change in the number of units sold. The marginal revenue formula is: marginal revenue = change in total revenue/change in output.