-Assuming no price discrimination,the firm represented by Figure 10-16 will have a per unit profit of
A)$50
B)$100
C)$150
D)$200
E)$250

Question

-Assuming no price discrimination,the firm represented by Figure 10-16 will have a per unit profit of
A)$50 
B)$100 
C)$150 
D)$200 
E)$250

Quizplus · Accepted Answer

The firm's per unit profit is equal to the difference between the price and the average total cost. At the profit-maximizing output level, the price is $250 and the average total cost is $200. Therefore, the per unit profit is $250 - $200 = $50.

-Assuming No Price Discrimination,the Firm Represented by Figure 10-16 Will