Use the following to answer questions:
Figure: Profit Maximization 5
-(Figure: Profit Maximization 5) At a price of $8 in this diagram, profit per unit is approximately ______, and total profit is approximately ______.
A) $8.00; $114
B) $5.50; $78
C) $2.50; $36
D) $5.00; $60

Question

Use the following to answer questions:
Figure: Profit Maximization 5 
-(Figure: Profit Maximization 5) At a price of $8 in this diagram, profit per unit is approximately ______, and total profit is approximately ______.
A) $8.00; $114 
B) $5.50; $78 
C) $2.50; $36 
D) $5.00; $60

Quizplus · Accepted Answer

Profit per unit is calculated as price minus average total cost. If the price is $8 and the average total cost is approximately $5.50, then the profit per unit is $2.50. Total profit is profit per unit multiplied by quantity, which is approximately $36.

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