50 Quantity Figure 4- 21. Refer to Figure 4. Suppose a technological innovation reduces rms' costs, particularly at higher levels of production. If this market is perfectly competitive, what is the impact on producer surplus? 3) Producer surplus decreases from $450 to $0 b) Producer surplus remains constant c] Producer surplus increases from $450 to $1,350 (1) Producer surplus increases from $450 to $1,800