Final answer:
Andrews's inventory carry cost for carrying one additional unit of Adam would be the additional loss incurred by that extra unit, calculated as the difference between the marginal cost and the sale price, which is $5 per unit.
Step-by-step explanation:
From a marginal analysis perspective, the inventory carry cost refers to the additional cost associated with carrying an extra unit of inventory. This concept is crucial for businesses like Andrews, as it helps in determining the optimal inventory level that maximizes profit or minimizes loss. Considering the provided context where the marginal costs are $30/unit and the sale price is $25/unit, carrying additional inventory would increase the loss by the difference between these two amounts, which is $5 for each additional unit.
Therefore, if Andrews carries one additional unit of Adam in inventory at the end, the inventory carry cost would be the loss incurred by that extra unit. Since carrying additional inventory would add to the losses rather than to the profit, the firm should aim to reduce its inventory to the level where the marginal cost equals the marginal revenue.