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?

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The terms marginal revenue and marginal cost refer to the addition to the total revenue and total co... View the full answer