Use the following to answer question(s): A Profit-Maximizing Monopoly Firm

-(Exhibit: A Profit-Maximizing Monopoly Firm) This profit-maximizing monopoly firm's profit per unit is:
A) $5.
B) $13.
C) $14.
D) $20.

Question

Use the following to answer question(s): A Profit-Maximizing Monopoly Firm
 
-(Exhibit: A Profit-Maximizing Monopoly Firm) This profit-maximizing monopoly firm's profit per unit is:
A) $5. 
B) $13. 
C) $14. 
D) $20.

Quizplus · Accepted Answer

The profit per unit for a monopoly firm is calculated as the difference between the price at which the firm sells its product and the average cost of producing that product. Without specific numbers from an exhibit, the general approach to find the profit per unit involves identifying the price level at which the firm decides to operate (based on demand and marginal revenue) and subtracting the average cost at that quantity of output. Since the correct answer is provided as B) $13, it suggests that in the given scenario, the price at which the firm sells its product minus the average cost of producing one unit of the product equals $13. This calculation is based on the assumption that the exhibit provided specific numerical details to arrive at this conclusion.

Use the Following to Answer Question(s): a Profit-Maximizing Monopoly Firm