Figure 16-4
-Refer to Figure 16-4. The maximum total short-run economic profit for the monopolistically competitive firm in this figure is
A)-$3,000.
B)$3,000.
C)$9,000.
D)$24,000.

Question

Figure 16-4 
-Refer to Figure 16-4. The maximum total short-run economic profit for the monopolistically competitive firm in this figure is
A)-$3,000. 
B)$3,000. 
C)$9,000. 
D)$24,000.

Quizplus · Accepted Answer

The maximum total short-run economic profit is calculated by multiplying the profit per unit by the quantity sold. In this case, the profit per unit is $3 (difference between price and average total cost), and the quantity is 1,000 units, resulting in a total profit of $3,000.

Figure 16-4 -Refer to Figure 16-4. the Maximum Total Short-Run Economic Profit