Multiple Choice
Use the following for questions 40-42.
Exhibit: Profit Maximization for a Firm in Monopolistic Competition
-(Exhibit: Profit Maximization for a Firm in Monopolistic Competition.) Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC'.After the innovation reduced the cost, the firm's maximum economic profit is:
A) $0.
B) $30.
C) $1,500.
D) $3,000.
Correct Answer:

Verified
Correct Answer:
Verified
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