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

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Quizplus · Accepted Answer

If MC > MR for the 100th unit, it means that the cost of producing that unit exceeds the revenue it generates. Therefore, producing the 100th unit would decrease the firm's profit. The firm should have stopped producing units before reaching the 100th, where MC > MR. In other words, the firm is not maximizing profit or minimizing losses if it produces the 100th unit, and should produce fewer units to achieve this goal.

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