If, for the last unit of a good produced by a perfectly competitive firm, MR MC, then in producing it, the firm
A)added more to total costs than it added to total revenue.
B)added more to total revenue than it added to total cost.
C)is maximizing marginal profit.
D)has minimized its losses.

Question

If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing it, the firm
A)added more to total costs than it added to total revenue.
B)added more to total revenue than it added to total cost.
C)is maximizing marginal profit.
D)has minimized its losses.

Quizplus · Accepted Answer

If MR > MC, then the firm is adding more to total revenue than it is adding to total cost.

If, for the Last Unit of a Good Produced by a Perfectly