The formula used for calculating the total profit of a monopolistic competitor is ________.

Question

Quizplus · Accepted Answer

The formula for calculating the total profit of a monopolistic competitor is (Price - Average Total Cost) × Quantity. This takes into account both the revenue generated by the price and the costs incurred by producing the quantity of goods sold. Subtracting Average Total Cost (ATC) from the Price gives us the profit per unit of output, and this is multiplied by the quantity to get the total profit.

The Formula Used for Calculating the Total Profit of a Monopolistic