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A Manager Invests $400,000 in a Technology to Reduce Overall

Question 15

Multiple Choice

A manager invests $400,000 in a technology to reduce overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.Ceteris peribus,if the firm continues its production in the same economic environment,the firms economic profits should


A) increase
B) decrease
C) stay the same
D) increase as long as the investment does not generate implicit costs that are greater than $0.15 per unit

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