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Scenario 1-2 Suppose a Cigar Manufacturer Currently Sells 1,500 Cigars Per Week

Question 101

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Scenario 1-2
Suppose a cigar manufacturer currently sells 1,500 cigars per week and makes a profit of $3,000 per week.The plant foreman observes,"Although the last 500 cigars we produced and sold increased our revenue by $7,500 and our costs by $7,000,we are only making an overall profit of $3,000 per week so I think we need to cut back on production.
-Refer to Scenario 1-2.Using marginal analysis terminology,what is another economic term for the incremental revenue received from the sale of the last 500 cigars?


A) gross earnings
B) marginal revenue
C) sales revenue
D) gross profit

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