Which of the Following Is True of Marginal Revenue

question 27

Multiple Choice

Which of the following is true of marginal revenue?

• A)Marginal revenue equals total revenue divided by quantity.
• B)Marginal revenue is the slope of the supply curve of a firm.
• C)Marginal revenue is the slope of the total cost curve when profit is maximized.
• D)Marginal revenue equals the change in total revenue divided by the change in the quantity.
• E)Marginal revenue equals the income earned by selling the stocks on the margin.

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Definitions:

Inventory Turnover

A measure that reveals the frequency at which a firm's stock is sold and replenished within a given timeframe, demonstrating the effectiveness of its inventory control.

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable balance in a given period.

Year 2

Designates the second fiscal or calendar year in a sequence of years, crucial for tracking progress, budgets, and planning in various contexts.

Average Collection Period

The average amount of time it takes for a business to receive payments owed by its customers for goods or services sold on credit.