Paper 1 · revenue concepts
What is marginal revenue?
Athe difference between the total revenue of selling n units and n − 1 units of sales
Bthe difference between the average revenue of selling n units and n − 1 units of output
Cthe difference between the average total revenue of selling n units and n − 1
Dthe average variable cost of producing one more unit of output
Explanation: Marginal revenue is defined as the addition to total revenue from selling one more unit, i.e. TR(n) - TR(n-1).
ZIMSEC Economics Paper 1, June 2009, Q6
