Graphically,profit per unit of output can be found by:
A)the triangle formed under the demand curve.
B)the rectangle formed under the demand curve at a given price and quantity combination.
C)the rectangle formed under the average-total-cost curve at a given ATC and quantity combination.
D)the line segment between the demand and average-total-cost curves at any level of output.
E)the line segment between the horizontal axis and the average-total-cost curves at any level of output.

Question

Quizplus · Accepted Answer

Profit per unit of output is equal to the difference between price and average total cost at each level of output. This difference is represented by the line segment between the demand and average total cost curves at any level of output. Therefore, option D is the best choice.

Graphically,profit Per Unit of Output Can Be Found By