Marginal Revenue Is the

question 94

Multiple Choice

Marginal revenue is the

• A) ratio of total revenue to quantity.
• B) difference between total revenue and total costs.
• C) added revenue that a firm takes in when it increases output by one additional unit.
• D) additional profit the firm earns when it sells an additional unit of output.

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Definitions:

Machine-Hours

A measure of production output or operation based on the number of hours machines are running.

Job-Order Costing

An accounting method where costs are assigned to specific jobs or batches, used in situations where products are distinctly different.

Selling Price

The amount of money charged for a product or service, determined by considering costs, market demand, competition, and profitability.

Unit Product Costs

The calculated cost assigned to a single unit of product, typically including direct materials, direct labor, and allocated overhead.