Abusiness manufacturer has continued producing bicycles until the marginal cost reached $200, at which marginal revenue also reached $200. what would be the effect of producing an addition bicycle? explain.

Its percentage profit would decrease.

Explanation:

Marginal cost and marginal revenue is the cost of producing one more product, and the marginal revenue is the profit made by selling one more product, when both are equal that means that the company has reached the point where the graphs of cost and revenue are drafting away, if the company continues to produce bicycles the company would start to loose money.

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