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The profit margin is ________.

A. also the average profit.
B. the price minus the average cost.
C. the total profit divided by the quantity produced
D. all of the above

User Diegodsp
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1 Answer

3 votes

Answer:

Option (D) is correct.

Step-by-step explanation:

Profit margin refers to the earnings of a producer on every unit sold in the market.

The profit margin is calculated by dividing the total profit by the total quantity produced.

Profit margin = Total profit ÷ Quantity produced

Above formula says that profit margin gives us the per unit profit and the average profit also shows the per unit profit.

Profit margin = Price - Average cost ⇒ This will also gives us the per unit profit.

User Scorpiodawg
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