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.
1. The starting point is distinguishing between private costs and social costs: a. A private cost of production is a cost borne by the producer of a good or service. b. Marginal cost is the cost of producing an additional unit of a good or service. c. Marginal private cost (MC) is the cost of producing an additional unit of a good or service that is borne by the producer of the good or service. d. Marginal external cost