The value of a product to an average consumer is V; and the average price that the firm can charge a consumer for that product is P. Here, V - P can be termed as
A) consumer surplus per unit.
B) producer surplus per unit.
C) profit growth.
D) profit per unit sold.

Question

Quizplus · Accepted Answer

The value of a product to an average consumer is V; the average price that the firm can charge a consumer for that product given competitive pressures and its ability to segment the market is P; and the average unit cost of producing that product is C. The firm's profit per unit sold (?) is equal to P - C, while the consumer surplus per unit is equal to V - P.

The Value of a Product to an Average Consumer Is