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.

---

Definitions:

Gross Method

An accounting practice where purchases are recorded at their gross price without deducting any cash discounts at the time of purchase.

Perpetual Inventory System

An accounting technique that utilizes computerized point-of-sale systems and enterprise asset management software to immediately record inventory transactions upon sale or purchase.

Merchandise

Goods or products that are bought and sold in retail or wholesale in the business.

Sales Discounts

Reductions in the selling price offered to customers, often as an incentive to encourage prompt payment.