If, for a perfectly competitive firm, marginal cost is greater than marginal revenue for the 100th unit, then it follows that

Question

Quizplus · Accepted Answer

B) is correct because if marginal cost (MC) is greater than marginal revenue (MR) for the 100th unit, it means producing that unit adds more to total cost than it does to total revenue, making it unprofitable. D) is also correct because if MC > MR, the firm is not maximizing profit or minimizing losses by producing that unit; it should produce up to the point where MC = MR for profit maximization or loss minimization.

If, for a Perfectly Competitive Firm, Marginal Cost Is Greater