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

question 80

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)marginal cost must equal marginal revenue for the 101st unit produced and sold.
• C)marginal cost must equals marginal revenue for the 99th unit produced and sold.
• D)the firm is not maximizing profit, or minimizing losses, if it produces the 100th unit.

---

Definitions:

Negative Punishment

A behavior modification technique where a desirable stimulus is removed after a particular behavior, with the aim of decreasing that behavior.

Negative Reinforcement

A behavior modification technique where the removal of an unfavorable outcome or stimulus strengthens or increases the likelihood of a specific response or behavior.

Variable-Interval Schedule

A reinforcement schedule in which the behavior is reinforced after an unpredictable amount of time has passed, creating a steady, consistent response rate.

Fixed-Ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses, often used in behaviorist research and theories.