Figure 7.2:
-In Figure 7.2,profit per unit for a profit-maximizing monopolist is closest to:
A) $1.00.
B) $3.50.
C) $7.50.
D) $8.00

Question

Figure 7.2: 
-In Figure 7.2,profit per unit for a profit-maximizing monopolist is closest to:
A) $1.00. 
B) $3.50. 
C) $7.50. 
D) $8.00

Quizplus · Accepted Answer

Profit per unit for a profit-maximizing monopolist is calculated as the difference between the price at which the product is sold and the marginal cost of producing one more unit at the profit-maximizing quantity. Without seeing Figure 7.2, the correct answer cannot be determined directly from the question. However, based on common economic principles, the profit per unit would be an amount that reflects the monopolist's ability to set prices above marginal costs. The choice provided here as correct (B) $3.50, is selected based on the premise of the question, but in practice, the actual figure would depend on specific details provided in the figure mentioned.

Figure 7.2: -In Figure 7.2,profit Per Unit for a Profit-Maximizing Monopolist Is