Final answer:
Marginal revenue is calculated by dividing the change in total revenue by the change in quantity. This is the correct method for assessing the additional revenue earned from the sale of one more unit of a product or service.
Step-by-step explanation:
The marginal revenue of a firm can be calculated in a specific way. To find the marginal revenue, you would need to divide the change in total revenue by the change in quantity. This method reflects how additional sales contribute to overall revenue figures, showing the revenue earned by selling one additional unit.
Regarding the options provided, the correct method to calculate marginal revenue is Option 1: By dividing the change in total revenue by the change in quantity. The other options do not appropriately represent the calculation of marginal revenue. Particularly, Option 3 and Option 4 are incorrect as they involve total cost and price, respectively, which are not part of the marginal revenue calculation. Option 2 is a misconception as it relates to a change in revenue, not marginal revenue.
While marginal cost is related to profitability analysis, it is calculated differently - by dividing the change in total cost by the change in output. By comparing the marginal cost to the marginal revenue, a firm can determine the profitability of producing an additional unit.