Use the following figure to answer the question : Figure 9-3 : shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output.
-At the output level of OC in Figure 9-3,average profit per unit of output is equal to _____.
A)GZ
B)MG
C)ZM
D)GC

Question

Use the following figure to answer the question : Figure 9-3 : shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output. 
-At the output level of OC in Figure 9-3,average profit per unit of output is equal to _____.
A)GZ 
B)MG 
C)ZM 
D)GC

Quizplus · Accepted Answer

At the output level of OC, average profit per unit of output is the difference between the average revenue per unit (price) and the average cost per unit. This is represented by the vertical distance between the price line and the average cost curve at output OC, which is GZ.

Use the Following Figure to Answer the Question : Figure