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Use the Following for Questions 40-42

Question 4

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Use the following for questions 40-42.
Exhibit: Profit Maximization for a Firm in Monopolistic Competition
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.
-(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.

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