Suppose the extra cost of producing an extra million kilograms of french fries is $1 million.Then, McCain Foods Ltd.should make the extra french fries if they generate additional revenue of $1 million.

Question

Quizplus · Accepted Answer

If the extra cost of producing an extra million kilograms of french fries is $1 million and the additional revenue generated by selling that quantity of fries is also $1 million, then the cost and revenue would cancel each other out. Therefore, making the extra french fries would generate additional revenue without any net cost, making it a profitable decision for McCain Foods Ltd.

Suppose the Extra Cost of Producing an Extra Million Kilograms