A Revenue That Differs Between Alternatives and Makes a Difference

question 99

Multiple Choice

A revenue that differs between alternatives and makes a difference in decision-making is called a(n)

• A) sales revenue.
• B) incremental revenue.
• C) unavoidable revenue.
• D) irrelevant revenue.

---

Definitions:

Indifference Curve

A graph showing different bundles of goods, each measured as to quantity, between which a consumer is indifferent.

Slope

In mathematics, the measure of the steepness or incline of a line, typically defined as the ratio of the vertical change to the horizontal change.

Utility Function

An economic concept that measures preferences over a set of goods and services, reflecting satisfaction or happiness.

Indifference Curve

A graphical representation in microeconomic theory of all possible bundles of goods between which a consumer is indifferent, showing preferences of equal utility.