After General Howe's forces defeated the Americans at Brooklyn Heights and White Plains, Washington's strategy called for

1 answer:

5 0

After General Howe’s forces defeated the Americans at Brooklyn Heights and White Plains, Washington’s strategy called for drawing the British forces inland. General Howe not only moved inland to the northwest that is towards Manhattan but further West to New Jersey. General Howe defeated the Continental army of George Washington not only in 1776 but also during the winter months of 1775. The British controlled the New York harbour until the end of the war. They used this harbour as a base to attack other targets.

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<h2><u>Marginal Revenue and Marginal Cost</u></h2><h3>Marginal Revenue</h3>

It is referred to as the change in the revenue value due to the selling of an additional product. In the question given above, the revenue for producing 100 units is $10,000 ($100 x 100 units). So, when 1 additional unit is produced the extra revenue earned is $100 ($10,100 - $10,000). Therefore, the marginal revenue is $100.

<h3>Marginal Cost</h3>

It is referred to as the extra cost for producing an additional unit. In the given scenario, the cost for producing the 100 units is $8,000 (100 units x $80). When producing an additional unit the cost goes up to $8,120. Therefore, the marginal cost for producing an additional unit is $120 ($8,120 - $8,000).

<h3> The Bottom Line</h3>

Companies used the details on marginal revenue and marginal cost to:

Determine Ideal production levels

Calculate their profitability rate

Prepare plans to remain competitive and profitable

Hence, the Marginal Revenue and Marginal Cost for one additional unit are $100 and $120 respectively.

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