You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $100 and costs $80 to produce. You are considering increasing your company's production by one unit, upping the total to 101 widgets. At this level of production, total revenue will increase to $10,100, and total costs will increase to $8,120. What is the marginal revenue and the marginal cost of making this change? A. MR = $10,000 and MC = $8,000 B. MR = $10,100 and MC = $8,120 C. MR = $100 and MC = $120 D. MR = $100 and MC = $80

You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $100 and costs $80 to produce. You are considering increasing your company's production by one unit, upping the total to 101 widgets. At this level of production, total revenue will increase to $10,100, and total costs will increase to $8,120. What is the marginal revenue and the marginal cost of making this change? A. MR = $10,000 and MC = $8,000 B. MR = $10,100 and MC = $8,120 C. MR = $100 and MC = $120 D. MR = $100 and MC = $80

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section8.4: Costs Of Production: Total, Average, Marginal

Problem 2ST

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