The increase in the company's products in one unit will increase Marginal Revenue to increase by $100 and Marginal Cost to increase by $120.
<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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Answer:
The final of the 10 amendments that constitute the Bill of Rights, the Tenth Amendment was inserted into the Constitution largely to relieve tension and to assuage the fears of states’ rights advocates, who believed that the newly adopted Constitution would enable the federal government to run roughshod over the states and their citizens. While the Federalists, who advocated a strong central government, had in that respect prevailed with the ratification of the Constitution, it was essential to the integrity of the document and to the stability of the fledgling country to acknowledge the interests of the Anti-Federalists, such as Patrick Henry, who had unsuccessfully opposed the strong central government created by the Constitution.
Franklin Delano Roosevelt
France helped provide troops, money and military leadership to the Americans. They made a treaty of alliance which means they were allies against Great Britain.
Mercantilism takes away raw goods that the homeland desires from the colony, allowing the homeland to benefit while the colony gets nothing in return.
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