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.
This is computed by taking the change in total revenue divided by the change in output. If costs increase by $80 by producing two more units of output, then the marginal cost per unit of output would be $40. A marginal benefit of $50 compared to the Marginal Cost of $40 would indicate that this would be a wise choice.Although we may not explicitly write down the marginal benefit and marginal cost of each choice we face, we subconsciously do this every time we make a choice.his is computed by taking the change in total revenue divided by the change in output. If costs increase by $80 by producing two more units of output, then the marginal cost per unit of output would be $40. A marginal benefit of $50 compared to the Marginal Cost of $40 would indicate that this would be a wise choice.