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What is the best definition of marginal revenue? 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

Respuesta :

The best definition of marginal revenue is the additional income gained from selling an additional good.

Option: C

Explanation:

Within a fully competitive market, the extra income produced by the sale of an additional component of a good is equivalent to the price that the firm will sell the good to the buyer. The extra revenue that will be generated by one component through product sales is understood as marginal revenue in micro-economics. Delivering one more unit would generate greater revenue than it would cost if the marginal revenue is greater than the cost of margin. The value of delivering one more unit is a Marginal cost.

marvineetesh3

The best definition of marginal revenue is the additional income gained from selling an additional good.

What is marginal revenue?

  • Marginal revenue[MR] is the addition made to total revenue.

  • Marginal revenue (MR) is the gain in revenue that results from the sale of one additional unit of output.

  • While marginal[MR] 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.

  • The formula for computing marginal revenue[MR] is:

        [tex]\text{Marginal Revenue}=\dfrac{\Delta\text{MR}}{\Delta\TEXT{Q}} .[/tex]

Therefore, Marginal revenue is the additional income gained from selling an additional unit of goods.

So, the option [C] is correct.

Learn more about marginal revenue, refer:

https://brainly.com/question/10929905

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