According to the chart, the marginal revenue is defined as:

• A. the difference between price and average cost
• B. the change in total cost resulting from producing one more unit
• C. the change in total revenue resulting from selling one more unit of output
• D. the total revenue divided by the number of units sold

Answer: (C)

Verified step by step guidance

1. Understand the concept of marginal revenue (MR): Marginal revenue is the additional revenue a firm earns by selling one more unit of output.
2. Recall the formula for marginal revenue: \(MR = \Delta TR / \Delta Q\), where \(\Delta TR\) is the change in total revenue and \(\Delta Q\) is the change in quantity sold (usually one unit).
3. Compare the given options with the definition: Marginal revenue is not the difference between price and average cost, nor is it related to total cost changes (which relate to marginal cost).
4. Eliminate options that confuse marginal revenue with average revenue or average cost, such as total revenue divided by units sold (which is average revenue).
5. Conclude that the correct definition of marginal revenue is the change in total revenue resulting from selling one more unit of output.