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Figure: Firms in Monopolistic Competition
-(Figure: Firms in Monopolistic Competition)Use Figure: Firms in Monopolistic Competition.In panel (c)of the figure,economic loss per unit is the vertical distance between points:

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Use the following to answer questions :
Figure: Firms in Monopolistic Competition 
-(Figure: Firms in Monopolistic Competition)Use Figure: Firms in Monopolistic Competition.In panel (c)of the figure,economic loss per unit is the vertical distance between points:

Quizplus · Accepted Answer

Economic loss per unit is measured as the vertical distance between total revenue and total cost curves. In panel (c), the total revenue and total cost curves intersect at point V and the price charged is P*. The economic loss per unit is the vertical distance between point V and the average total cost curve at point T. Thus, the correct option is D, i.e. V and T.

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