If the Output of a Firm Is Increased by One

question 85

Multiple Choice

If the output of a firm is increased by one unit, the revenue addition is called

• A)total revenue.
• B)average revenue.
• C)marginal revenue.
• D)economic profit.

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Definitions:

Customer Needs

Customer needs are the recognized desires or requirements that clients expect to be fulfilled by a product or service.

Decentralization

The distribution of decision-making power and authority away from a central location or authority figure, often to enhance flexibility and responsiveness.

Lower Level Departments

Departments within an organization that are responsible for executing the operational activities rather than setting strategic goals or making high-level decisions.

Accountability

The obligation of an individual, organization, or entity to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.