Use the following to answer questions :
-(Table: Spring Water)Use Table: Spring Water.The table shows the demand and cost data for a firm in a monopolistically competitive industry producing drinking water from underground springs.At the profit-maximizing output,profit per unit is:

Question

Use the following to answer questions : 
-(Table: Spring Water)Use Table: Spring Water.The table shows the demand and cost data for a firm in a monopolistically competitive industry producing drinking water from underground springs.At the profit-maximizing output,profit per unit is:

Quizplus · Accepted Answer

At the profit-maximizing output, the firm sets marginal cost equal to marginal revenue. The profit per unit is the difference between price and average total cost. Given the choices, $1.17 is the correct profit per unit.

Use the Following to Answer Questions