Final answer:
When advertising is increased by one unit, the increase in sales in dollars can be calculated by finding the marginal revenue. In this case, the increase in sales in dollars is $1000.
Step-by-step explanation:
Total revenue is the amount of money a company earns from selling its products or services. When advertising is increased by one unit, the increase in sales in dollars can be calculated by finding the marginal revenue. Marginal revenue is the change in total revenue that results from producing one additional unit of output. To find the increase in sales in dollars, we can use the information from Table 9.3 in the reference. As output increases from 1 to 2 units, total revenue increases from $1200 to $2200. Therefore, the increase in sales in dollars when advertising is increased by one unit is $2200 - $1200 = $1000.