Which of the following statements is true about marginal revenue?
A) Data on marginal revenue cannot be used to determine when peak revenue is expected to occur.
B) Marginal revenue is the difference between total revenue and total cost.
C) Marginal revenue can be positive or negative.
D) Marginal revenue is not affected by the sale of an additional unit.
E) When marginal revenue is equal to marginal cost, a firm will incur losses on each unit sold.
Answer: C