Use the following for questions 43-51.
Exhibit: Firms in Monopolistic Competition

-(Exhibit: Firms in Monopolistic Competition) In Panel (c), economic loss per unit is amount:
A) XT.
B) UW.
C) VW.
D) VT.

Question

Use the following for questions 43-51.
Exhibit: Firms in Monopolistic Competition
 
-(Exhibit: Firms in Monopolistic Competition) In Panel (c), economic loss per unit is amount:
A) XT. 
B) UW. 
C) VW. 
D) VT.

Quizplus · Accepted Answer

In panel (c), the economic loss per unit is the difference between the average total cost (ATC) and the price (P) at the profit-maximizing quantity (Q). The ATC is given by point V and the price is given by point T, so the economic loss per unit is VT. Therefore, the answer is D.

Use the Following for Questions 43-51