Profit per unit is equal to
A)TR - TC.
B)P - MR.
C)P - ATC.
D)TR - ATC.

Name: Profit per unit is equal to A)TR - TC. B)P - MR. C)P - ATC. D)TR - ATC.
Brand: Quizplus
Rating: 4.7 (44 reviews)

Question

Quizplus · Accepted Answer

Profit per unit is equal to the price (P) minus the average total cost (ATC), which gives us the contribution margin (CM) per unit. Subtracting variable cost from CM per unit, we get the profit per unit. Therefore, the correct answer is C, which subtracts ATC from P to give the profit per unit.

Profit Per Unit Is Equal to