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Question 196

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Use the following to answer questions:
Figure: Profit Maximization for a Firm in Monopolistic Competition Use the following to answer questions: Figure: Profit Maximization for a Firm in Monopolistic Competition   -(Figure: Profit Maximization for a Firm in Monopolistic Competition)  Look at the figure Profit Maximization for a Firm in Monopolistic Competition. Suppose that an innovation reduces a firm's costs from ATC to ATC'. Before the innovation reduced the cost, the firm's maximum economic profit was: A)  $0. B)  $30. C)  $750. D)  $4,500.
-(Figure: Profit Maximization for a Firm in Monopolistic Competition) Look at the figure Profit Maximization for a Firm in Monopolistic Competition. Suppose that an innovation reduces a firm's costs from ATC to ATC'. Before the innovation reduced the cost, the firm's maximum economic profit was:


A) $0.
B) $30.
C) $750.
D) $4,500.

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