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

Question 74

Multiple Choice

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


A) producing the 100th unit adds more to total revenue than it does to total cost.
B) producing the 100th unit adds more to total cost than it does to total revenue.
C) marginal cost equals marginal revenue for the 99th unit.
D) the firm is not maximizing profit, or minimizing losses, if it produces the 100th unit.
E) b and d

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