Figure 16-12
-Refer to Figure 16-12. How much cost per unit could this firm save by producing the efficient level of output rather than the profit-maximizing level of output?
A)$0
B)$1
C)$2
D)$3

Question

Figure 16-12 
-Refer to Figure 16-12. How much cost per unit could this firm save by producing the efficient level of output rather than the profit-maximizing level of output?
A)$0 
B)$1 
C)$2 
D)$3

Quizplus · Accepted Answer

The cost per unit at the efficient level of output is $5. At the profit-maximizing level of output, the cost per unit is $7. Therefore, the firm could save $2 per unit by producing the efficient level of output instead of the profit-maximizing level of output.

Figure 16-12 -Refer to Figure 16-12. How Much Cost Per Unit Could