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

Name: Profit per unit is equal to A)TR - TC. B)P - MR. C)P - ATC.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Profit per unit is equal to price (P) minus average total cost (ATC), which is option C. Option A is actually calculating total profit, not profit per unit. Option B calculates the difference between price and marginal revenue, which is not the same as profit per unit.

Profit Per Unit Is Equal to