Which of the Following Is NOT True About Marginal Revenue

question 66

Multiple Choice

Which of the following is NOT true about marginal revenue?

• A) It is a firm's marginal benefit.
• B) It is defined as the extra revenue generated by the production of one more unit.
• C) It can be expressed mathematically as MR = [R(Q - ∆Q) - R(Q)]/∆Q.
• D) It can be expressed mathematically as ∆R/∆Q.

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Definitions:

Industry

The production of goods or services within an economy that are related by their primary business activities, sector, or domain.

Cutthroat Oligopolist

A situation in an oligopoly where companies compete aggressively, often with price cuts, to the detriment of their competitors.

Prices

The sum of money needed to buy a product or service.

Competitors

Other businesses or individuals that offer similar goods or services within the same market, competing for the same customers.