# Profit per unit

Please see the attached file.

a. What is the optimal price?

b. What is the Profit per unit

c. What is the ATC in dollars?

d. If the monopolist were to behave like a perfectly competitive irm(operating in the long run), determine its price.

How do you arrive at each?

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#### Solution Preview

a. The optimal quantity is E, where MC=MR. The optimal price is found by looking at the highest price that the consumers are willing to pay for this quantity. To do this, look vertically up from E to the demand curve where you'll find J. Price corresponding to poin J is A. So, the optimal ...

#### Solution Summary

The optimal price for a unit is determined. The profit per unit and ATC in dollars are calculated. If the monopolist were to behave like a perfectly competitive irm, the price is determined.

$2.19