Menthol and methyl salicylate are the main active ingredients of peppermint. Internally, they have anti-spasmodic actions, with calming effects on the muscles of the stomach, intestinal tract, and uterus.
So we must find out if marginal cost is greater than or less than $300. To do this, calculate total cost for 200 doses and 201 doses, and calculate the increase in total cost. Multiplying quantity by average total cost, we find that total cost rises from $40,000 to $40,401, so marginal cost is $401.ith marginal cost of $1,000 per diamond, or $1 million per thousand diamonds, the monopoly will maximize profits at a price of $7,000 and a quantity of 6,000. Additional production beyond this point would lead to a situation where marginal revenue is lower than marginal cost.
Profit Maximization. When the marginal costs equal marginal revenues, a firm maximizes its profit. In the example, the total cost of producing three shirts is $18. If each shirt sells for $1, the total profit is $27.Since marginal revenue is $15 and marginal cost is $3, it means the firm can still produce more units to increase profits.n the example, the total cost of producing three shirts is $18. If each shirt sells for $1, the total profit is $27. Since marginal revenue is $15 and marginal cost is $3, it means the firm can still produce more units to increase profits.