Q5. At any given level of a firm's output, marginal revenue is the revenue generated on
a) Entire output 'b) Additional unit of output c) Both a and b d) None of these
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Marginal Revenue(MR) denotes the additional or incremental sales revenue obtained by firms or companies from selling one more unit of the output.Hence,the correct answer is option b) or additional unit of output.
Explanation:
In Microeconomics,MR basically refers to the revenue generated from selling an additional unit of the output by any firm or company.It also reflects the overall change in the Total Revenue(TR) of the firm/company from sale of an additional or incremental unit of output.The word marginal in Economics is used to imply an incremental or additional change of any variable.Therefore,the correct answer in this case is option b).
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