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A Perfectly-Competitive Firm Produces 2,000 Units of a Good During

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A perfectly-competitive firm produces 2,000 units of a good during some period of time. For the 2,000th unit, marginal cost is equal to marginal revenue. The difference between marginal revenue and marginal cost is greater for the first unit the firm produces than the second, and greater for the second than the third, and so on. Furthermore, marginal revenue is greater than marginal cost for every unit from the first to the 1,999th. It follows that the


Definitions:

Reification

The cognitive process of treating an abstract concept as if it were a real, tangible object.

Abstract Concept

A concept that is not tangible or concrete, often involving complex ideas or qualities such as freedom, love, or justice.

Hypothetical

Pertaining to situations, conditions, or concepts that are possible or imagined rather than real or actual.

Concrete Object

An object that exists in physical form and can be perceived by the senses.

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