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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They were <span>motivated and eager to enter foreign markets.</span>
Even though im not writing the 2 paragraphs let me give you info about one of the cases: <span>Gibbons vs. Ogden: Federally issued permit vs. State (NY) issued permit to navigate waterways around New York. Marshall court re-emphasized Article VI (Supremacy) stating that federal law trumps state and this decision further emphasized the Commerce Clause stating that commerce was not defined solely as the buying and selling of goods, but the transportation thereof as well. Establishing that only the national Congress had the ability to regulate interstate trade, further strengthening the federal government over the states. This case as many affect the nature of federalism regarding its power, rights and roles. </span>
