QUESTION 11 Use the following graph to answer questions 33 & 34. Price and cost $40 30 23 20 10 0 MR MC 150 200 AR D ATC ATC Quantity per day Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC. Before the innovation reduced the cost (i.e., ignore ATC), the firm's maximum economic profit was SO O $30 $750 O $1,500 $3,000 54,500

QUESTION 11 Use the following graph to answer questions 33 & 34. Price and cost $40 30 23 20 10 0 MR MC 150 200 AR D ATC ATC Quantity per day Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC. Before the innovation reduced the cost (i.e., ignore ATC), the firm's maximum economic profit was SO O $30 $750 O $1,500 $3,000 54,500

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

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