A monopolist's profit per unit is shown by the difference between price and average cost per unit.

Question

Quizplus · Accepted Answer

This is true. A monopolist's profit per unit is equal to the price they charge for the good minus the average cost of producing that unit. This is because in a monopolistic market, the monopolist has control over the price they charge, and they will choose a price that maximizes their profit. This price will typically be higher than the average cost of production, resulting in a profit per unit.

A Monopolist's Profit Per Unit Is Shown by the Difference