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:

Demand Schedule

A table that lists the quantity of a good a consumer will purchase at various prices in a market.

Supply Schedule

A table that shows the relationship between the price of a good and the quantity supplied.

Competitive Market

A market structure characterized by many sellers and buyers, free entry and exit, and products that are similar but differentiated.

Going Price

The current market rate at which a particular good, service, or commodity can be bought or sold.