All things being equal, when producers sell goods for a lower price, they make:

• A. less profit per unit sold
• B. higher total profit regardless of quantity sold
• C. no change in profit per unit sold
• D. more profit per unit sold

Answer: (A)

Verified step by step guidance

1. Understand the relationship between price, cost, and profit per unit. Profit per unit is calculated as the difference between the selling price and the cost of producing one unit, i.e., \(\text{Profit per unit} = \text{Price} - \text{Cost}\).
2. Recognize that if the selling price decreases while the cost remains constant, the profit per unit will decrease because the difference between price and cost becomes smaller.
3. Consider that total profit depends on both profit per unit and the quantity sold, expressed as \(\text{Total Profit} = \text{Profit per unit} \times \text{Quantity sold}\).
4. Note that the problem states 'all things being equal,' which implies quantity sold does not change, so a lower price directly reduces profit per unit without affecting quantity.
5. Conclude that when producers sell goods for a lower price, they make less profit per unit sold, assuming costs and quantity sold remain unchanged.