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Figure: A Profit-Maximizing Monopoly Firm
-(Figure: A Profit-Maximizing Monopoly Firm) Look at the 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 questions:
Figure: A Profit-Maximizing Monopoly Firm 
-(Figure: A Profit-Maximizing Monopoly Firm) Look at the 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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