(Figure: Firms in Monopolistic Competition) Use Figure: Firms in Monopolistic Competition.In panel (A) of the figure,economic profit per unit is the vertical distance between points:

A) K and L.
B) L and O.
C) M and N.
D) N and O.

Question

Ayesha Bindon · Accepted Answer

Final Answer : B, Explanation :  Economic profit per unit is represented by the vertical distance between average total cost (ATC) and the demand curve (AR) at the profit-maximizing output. In panel (A), this occurs at point L and the economic profit per unit is the vertical distance between L and the intersection of ATC and AR at point O. Therefore, the correct answer is B, which represents the vertical distance between points L and O.

(Figure: Firms in Monopolistic Competition) Use Figure: Firms in Monopolistic Competition.In panel (A) of the figure,economic profit per unit is the vertical distance between points:

A) K and L.
B) L and O.
C) M and N.
D) N and O.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Firms in Monopolistic Competition) Use Figure: Firms in Monopolistic Competition.In panel (A) of the figure,economic profit per unit is the vertical distance between points:A) K and L.B) L and O.C) M and N.D) N and O.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Firms in Monopolistic Competition) Use Figure: Firms in Monopolistic Competition.In panel (A) of the figure,economic profit per unit is the vertical distance between points:

A) K and L.
B) L and O.
C) M and N.
D) N and O.