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Part 2 of 2 - Profit Maximization for a Firm in Monopolistic Competition Price and cost $40 MC ATC 30 23 ATC 20 10 MR

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Part 2 of 2 - Profit Maximization for a Firm in Monopolistic Competition Price and cost $40 MC ATC 30 23 ATC 20 10 MR AR = D 150 200 Quantity per day (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' Before the innovation reduced the cost, the firm's maximum economic profit was: A.$0. C B.$30. C.$750. D.$4,500

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