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.
Learn more on Marginal Revenue and Marginal Cost here: brainly.com/question/16615264
The Quartering Act is the answer to this problem
The African empires remained largely as traditionalists and agriculturists. They stayed in their territories working hard to achieve progress. The Swahili city-states were traders and craftsmen. Their culture had been influenced by Middle-Easters and Indian territories. They were able to make dealings with overseas territories which helped them increase their economy.
