Use the following to answer question:
-Table: Spring Water.The table shows the demand and cost data for a firm in a monopolistically competitive industry producing drinking water from underground springs.At the profit-maximizing output,profit per unit is:
A)$1.17.
B)$8.83.
C)$10.00.
D)$11.75.

Question

Use the following to answer question: 
-Table: Spring Water.The table shows the demand and cost data for a firm in a monopolistically competitive industry producing drinking water from underground springs.At the profit-maximizing output,profit per unit is:
A)$1.17. 
B)$8.83. 
C)$10.00. 
D)$11.75.

Quizplus · Accepted Answer

The profit per unit is calculated as the difference between the price and the average total cost at the profit-maximizing output. Given the options, $1.17 is the most plausible profit per unit based on typical pricing and cost structures in monopolistic competition.

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