Figure 16-3

-Refer to Figure 16-3.The maximum total short-run economic profit for the monopolistically competitive firm in this figure is

Question

Figure 16-3
 
-Refer to Figure 16-3.The maximum total short-run economic profit for the monopolistically competitive firm in this figure is

Quizplus · Accepted Answer

The maximum total short-run economic profit is calculated by multiplying the profit per unit by the quantity sold. In the figure, the profit per unit is the difference between the price and the average total cost at the profit-maximizing quantity. If the figure shows a profit per unit of $15 and a quantity of 100 units, the total profit would be $1,500.

Figure 16-3 -Refer to Figure 16-3.The Maximum Total Short-Run Economic Profit for Short-Run