To calculate a firm's per unit of output profit, it is necessary to subtract
A)price from cost per unit.
B)price from resource costs.
C)cost per unit from product price.
D)cost per unit from cost of resources.

Question

Quizplus · Accepted Answer

To calculate per unit of output profit, you need to subtract the cost per unit from the product price. This is because profit is calculated as revenue minus cost, and in this case, revenue is the product price and cost is the cost per unit. Therefore, the correct answer is to subtract the cost per unit from the product price.

To Calculate a Firm's Per Unit of Output Profit, It