The extra or additional revenue associated with the production of an additional unit of output is the:

• A. average revenue
• B. total revenue
• C. marginal cost
• D. marginal revenue

Answer: (D)

Verified step by step guidance

1. Understand the definitions of the key terms: Average Revenue (AR) is the revenue earned per unit of output sold, calculated as total revenue divided by quantity sold.
2. Total Revenue (TR) is the overall income a firm receives from selling its goods or services, calculated as price multiplied by quantity sold.
3. Marginal Cost (MC) is the additional cost incurred from producing one more unit of output.
4. Marginal Revenue (MR) is the additional revenue gained from selling one more unit of output, calculated as the change in total revenue divided by the change in quantity sold, or mathematically: \(\text{MR} = \frac{\Delta TR}{\Delta Q}\).
5. Since the problem asks for the extra or additional revenue from producing an additional unit, the correct concept is Marginal Revenue, as it directly measures the incremental revenue from one more unit.