Question

Symbolically, marginal revenue can be written as ______.

• A. $MR=\frac{\Delta TVC}{\Delta Q}$
• B. $MR=\frac{\Delta TR}{\Delta Q}$
• C. ${MR}_n={TR}_n-{TR}_{n-1}$
• D. (B) or (C)

Answer 1

The correct option is D (B) or (C)

Marginal revenue refers to the change in revenue or additional revenue which a firm earns on selling a unit more of its output. It is calculated by dividing the change in total revenue by change in total quantity of commodity sold.

Marginal revenue = Change in total revenue/ Change in quantity of commodity sold.

or

MRn = TRn - TRn-1 where n is the given number of output.