Use the following to answer question:
Figure: A Profit-Maximizing Monopoly Firm
-(Figure: A Profit-Maximizing Monopoly Firm)Use Figure: A Profit-Maximizing Monopoly Firm.This firm's profit per unit is:
A)$5.
B)$12.
C)$15.
D)$20.

Question

Use the following to answer question:
Figure: A Profit-Maximizing Monopoly Firm 
-(Figure: A Profit-Maximizing Monopoly Firm)Use Figure: A Profit-Maximizing Monopoly Firm.This firm's profit per unit is:
A)$5. 
B)$12. 
C)$15. 
D)$20.

Quizplus · Accepted Answer

The profit per unit is equal to the difference between the price and the marginal cost. In this case, the price is $20 and the marginal cost is $8, so the profit per unit is $20 - $8 = $12.

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