What Is Net Marginal Revenue

question 33

Multiple Choice

What is net marginal revenue?

• A) The same as marginal profit.
• B) The additional revenue the firm earns from an extra unit of an internally produced intermediate input.
• C) The additional revenue the firm earns from producing one more unit of output.
• D) The additional revenue the firm earns from selling one more unit of output.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Subscriptions Receivable-Common Stock

The amount owed to a company from subscribers who have committed to buy its common stock but have not yet paid.

Common Stock Subscribed

Temporary stockholders’ equity account that records at par value stock that has been subscribed to but not fully paid for.

Organization Expense

These are initial costs incurred in the process of starting a business, such as legal fees, state fees, and promotional expenses, which may be expensed or capitalized over time.