Exhibit 10-1 A monopolistic competitive firm
-As presented in Exhibit 10-1, the short-run profit per unit of output for the monopolistic competitive firm is:

Question

Exhibit 10-1 A monopolistic competitive firm 
-As presented in Exhibit 10-1, the short-run profit per unit of output for the monopolistic competitive firm is:

Quizplus · Accepted Answer

The short-run profit per unit of output for a monopolistic competitive firm is equal to the difference between price and average total cost (ATC). In this exhibit, the price is $15 and the ATC is $10, giving a profit per unit of output of $5. Therefore, the correct answer is B.

Exhibit 10-1 a Monopolistic Competitive Firm